Bank of Cyprus Balance Sheet

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Below is some balance sheet data from the Bank of Cyprus, which is the largest bank in Cyprus.

With 36B Euro in assets, the bank would barely crack the list of the 50 largest banks in the US, but the bank holds about one quarter of the Cypriot deposits.  I’m haven’t spent much time in the past analyzing Cyprus’ banking system, but looking at this data generally as a bank analyst, a few things stand out.  1) Liquidity is decent compared to many European banks.  The Loan to Deposit ratio is about 92% 2) This is a reasonably profitable bank with a NIM in the 3% range 3) It has more capital than I would’ve expected too given that its effectively written off 2B Euro worth of GGB holdings. 4) The real issue is the quality of the loan portfolio, which is awful on a headline basis.  12% of the loan book is impaired, and almost 30% is past due.  Given that this bank is substantially deposit funded, it would be almost impossible to make it through a storm like this one without depositors taking some losses.

Bank of Cyprus Balance Sheet