Bank of Cyprus: NPE clean up on track (stays BUY)
We have updated our model for Bank of Cyprus to include the details of the strategy targets, announced in November, and the NPL sale reported on 18 January. Although the stock is up c.50% since we upgraded it to BUY in October 2020, we remain bullish on the stock, in view of: 1) its very low valuation multiples (P/TBV of 0.21x on 2021E); 2) the de-risking exercise, ahead of its Greek peers, with the pro-forma NPE ratio at c.16% and high NPE cash coverage (59%); and 3) its strong capital ratios (TCR of 18.2%), with low DTC exposure (22% of capital). We maintain our BUY rating on the stock, and have increased our PT to EUR 1.00/share (from EUR 0.90 previously).
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.