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Capitalisation value of banks a big challenge

May 24, 2019 at 9:02am
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Banks in Cyprus are in the process of raising capital and distance themselves from the lows recorded in the previous months.

After the announcement of financial results for the first quarter of 2019 by Bank of Cyprus and those of 2018 by Hellenic Bank, they now have to convince investors of the prospects. And a big part of the strategy is the deleveraging and reduction of existing non-performing loans.

Hellenic Bank appears to be the winner since its stock market value has grown after a recent capital increase and introduction of new shares. Before the increase, its capitalisation value on the Cyprus Stock Exchange was approximately €145 million and now stands at €362 million. The total number of new shares is 412,805,076.

Bank of Cyprus’ current capital value on the CSE stands at €598.80 million and has an overall number of shares of 446,199,933. Its stock market value has gradually suffered great reductions. In 2018, it stood at €740 million and at €1.15 billion in 2017. The big bet for Bank of Cyprus is for red loans to be reduced to €2 billion by taking various actions.

Greek banks in Cyprus have recorded better performances, especially Eurobank which is ranked first in the Athens Stock Exchange with a capitalisation value of €2.76 billion. Alpha Bank is second with about 50% difference at €1.89 billion.

The National Bank of Greece which was once at the top of banking capitalisation value in the Athens Stock Exchange is only a breath away with a value of €1.81 billion. Piraeus Bank is the smallest in capitalisation value on ATHEX. However, it has escaped from the previous year’s low of €400 million. Today its capitalisation value stands at €720 million.

 

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