RCB Bank Ltd has published the financial results for 2018
RCB Bank Ltd has published the consolidated financial statements for 2018, approved by the Board of Directors.
In 2018, RCB Bank’s profitability remained healthy, with net profit after tax amounting to 76.4 million Euros and return on equity (ROE) over 15%. In addition, the Bank has improved its overall operational efficiency. RCB also maintained a very low level of non-performing exposures (NPEs) and high level of NPE coverage. Gross volume of NPEs stood at 12.2 million Euros, 0.2% of total loans and advances to customers. NPE coverage by provisions was over 90%. RCB demonstrated high level of capital adequacy: the Common Equity Tier 1 and Tier 1 ratios reached 23.3%, and the total Capital Adequacy Ratio was 23.7%. A 6% increase was evident in the client base, primarily due to the fast-growing domestic clientele, which demonstrated a 34% increase in 2018. Throughout 2018 RCB was gradually reducing loans to large Russian corporate clients and relevant funding operations with VTB Bank, which resulted in decrease in the loan book to 4.9 billion Euro as at 31 December 2018 in comparison to 6.9 billion Euro as at 31 December 2017 and decrease in total assets respectively.
In November 2018 RCB launched a new 5-year strategy. The key pillars of the 2019-2023 are further expansion in the domestic market, private banking, a focused international business as well as technological investments for the development of innovative and better banking products for customers. The strategy also includes gradual reduction of exposures to large Russian corporate borrowers and funding operations with VTB Bank, which will reduce the concentration risk and lead to a more balanced structure of assets and liabilities focused on operations on Domestic and broader European market.
In 2019, 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. 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), continued in support of the Cyprus economy.
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.
