RCB Bank Ltd has published the financial results for 2017
RCB Bank Ltd has published the consolidated financial statements for 2017, approved by the Board of Directors.
In 2017, the net profit after tax demonstrated 19% growth in comparison to 2016 and amounted to 97.2 million Euros. RCB Bank has been consistently profitable for the last five years. The main driver behind the growth in profits was the increase of non-interest income from 23.4 million Euros in 2016 to 35.6 million Euros in 2017, the extension of the domestic market operations in Cyprus together with the improvement in the overall operational efficiency.
RCB continued its successful expansion in the local market as the key pillar of its strategy. Two new branches were successfully launched in Pafos and Larnaca during 2017. A 41% increase was demonstrated in its local client base and a remarkable growth in the volume of deposits and lending that the Bank disbursed to Cypriot businesses. The cooperation of RCB with both the European Investment Bank (EIB) and the European Investment Fund (EIF) on financing new investments and innovations of Cypriot small medium enterprises (SMEs), contributed to the growth of lending volumes.
RCB demonstrated high level of capital adequacy: the Common Equity Tier 1 ratio reached 20.1% and the Capital Adequacy Ratio was 21.2%. The operational efficiency together with the conservative and effective management of the credit risks allowed to build up a solid capital base and the necessary reserves while remaining profitable. The Bank has all the necessary financial reserves and capital to facilitate its further business development in Cyprus. In 2018, the Bank shall strengthen and extend its domestic business operations with Cypriot individual and corporate clients being the Bank’s key growth driver for the past three years.
Given the changes in the external environment, the whole Cypriot banking system has faced new challenges related to the increased risks of cross-border international financial operations. To mitigate these risks the Bank has been consistently enhancing its anti-money laundering and compliance procedures as well as strengthening its client on-boarding and monitoring policies. This process is to continue in 2018 and might lead to a significant reduction in operations with international clients of the Bank.
RCB Bank’s financial standing together with its focused client approach and competitive product offering, elevate the Bank as a leading financial partner for individual clients and businesses in Cyprus.
