NICOSIA: Bank of Cyprus, which was recapitalised last year using clients' deposits, posted a first-half net profit attributable to shareholders of 81 million euros ($106.87 million), it said on Wednesday.
The results were preliminary and have not been reviewed by external auditors, the Cypriot lender said.
Profit after tax excluding one-off items for the six-month period ending June 30 totalled 78 million euros. The profit figure was released ahead of an extraordinary shareholders' meeting on Thursday, when investors will be asked to approve a 1 billion euro capital increase. Auditor-reviewed results are due to be issued on Friday.
The bank's results are not directly comparable to past earnings because of the bail-in of depositors in 2013. Deposits over 100,000 euros were converted into equity as part of a 10 billion euro bailout for Cyprus from international lenders.
The east Mediterranean island was the first euro zone country which targeted depositors to recapitalise struggling banks, and also forced them to sell off overseas operations.
"The performance of the Cypriot operations, our core business, remains much stronger than the group's overall performance, supporting our efforts of shrinking to strength through the disposal of non-core operations and assets," Bank of Cyprus Chief Executive John Hourican said.
Foreign investors, including US based Wilbur Ross and the European Bank of Reconstruction and Development, have signed up to the bank's capital increase, designed to bolster regulatory capital ahead of Europe-wide stress tests later in the year.
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