WOOD Flash – Bank of Cyprus: reassuring quarter, distressed valuation not justified
Bank of Cyprus has reported recurring net profit of EUR 57m for 1Q18 vs. our forecast of EUR 29m. The beat on the bottom line was due mainly to higher non-core income. The underlying trends are fully in line with the full-year targets set by management (total income of over EUR 800m, a cost to income ratio of below 50%, a cost of risk lower than 100bps, EPS of EUR 0.40 and an organic NPE reduction of EUR 2bn). The 1Q18 trends and the maintenance of guidance are reassuring, in our view. There were no comments from management on the pending NPL sales, but we retain our view that the recent share price weakness is exaggerated.
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.
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