Alex Boulougouris, CFA

WOOD Flash – Bank of Cyprus: 1Q22 – solid quarter, and strong potential uplift in estimates due to rate hikes

Bank of Cyprus has reported 1Q22 results that are broadly in line with our estimates, and with an optimistic outlook ahead. The main positive drivers ahead include improving lending growth (+2% qoq) and a significant NII uplift from higher interest rates (potentially, EUR 80m to EUR 100m per year from 2023E), leading management to frontload the >10% ROTE target in 2024E, a year ahead of the plan. The stock remains deeply undervalued, trading at 0.27x P/TBV and a P/E of 4.6x, on our 2023E numbers (which do not incorporate the positive impact of the potential rate hikes).
Bank of Cyprus PCL

Wood and Company
Wood and Company

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.

Alex Boulougouris, CFA

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