AstroBank recorded after-tax profits of €30.4 million in 2023, which represents a return on average equity of 13.9%, compared to €12.2 million and a return of 6.2% in 2022. Excluding non-recurring items, the profits for 2023 amounted to €39.4 million, up from €21.7 million in 2022.

Total operating income increased by 34% to €97.2 million, up from €72.7 million in 2022. This increase is primarily due to a 46% rise in net interest income, totaling €74.8 million, reflecting the impact of the favorable interest rate environment on the bank's robust liquidity. The net interest margin for 2023 was 3.0%, up from 1.9% in 2022.

Net fee and commission income and other non-interest income amounted to €22.5 million, compared to €21.5 million in 2022.

Total expenses reached €50.9 million in 2023, marking a 2.8% increase from €49.5 million in 2022. Personnel expenses accounted for 53.2% of total expenses, amounting to €27.1 million in 2023, up by 4.8% from €25.9 million in 2022. This increase reflects annual increments prescribed by the collective bargaining agreement of bank employees and automatic price indexation adjustments, partially offset by savings from a voluntary staff exit scheme. In 2023, the scheme was accepted by 55 full-time employees, costing a total of €7.0 million, compared to 16 employees at a cost of €1.9 million in 2022. The total number of permanent staff as of December 31, 2023, was 392, down from 443 in 2022.

Other operating expenses in 2023 increased by 1.8% to €16.2 million from €15.9 million in 2022. Depreciation and write-offs decreased to €3.3 million from €3.7 million in 2022, while special levies, contributions to the Single Resolution Fund, and other charges amounted to €4.3 million (2022: €4.1 million).

The cost-to-income ratio improved to 52.3% in 2023 from 68.2% in 2022, mainly due to higher operating income and the management's ongoing commitment to efficiency and cost control.

Income before provisions, primarily from core banking activities, improved in 2023 to €46.4 million, up from €23.1 million in 2022, a 100.9% increase mainly attributed to the rise in net interest income.

Total impairment charges for 2023 amounted to €6.7 million compared to €3.7 million in 2022. The increase in 2023 is primarily due to higher loan impairment charges.

The total assets of the Group stood at €2.725 billion as of December 31, 2023 (December 31, 2022: €2.726 billion), remaining stable compared to the previous year.

Loans after provisions decreased from €1.091 billion as of December 31, 2022, to €933 million as of December 31, 2023, reflecting significant cleaning of the non-performing loan portfolio. Total new lending during this period was approximately €90 million. Ongoing new lending to businesses and individuals in Cyprus confirms AstroBank's strong commitment to the Cypriot economy and its robust financial position facilitating new business activities.

Customer deposits saw a 2.0% increase to €2.155 billion from €2.112 billion the previous year, consisting of deposits in euros and foreign currencies, primarily US dollars and British pounds.

As of December 31, 2023, funding from central banks amounted to €200 million (2022: €300 million), exclusively from the Targeted Longer-Term Refinancing Operations (TLTRO) III program. The bank repaid €100 million of TLTRO III funding in September 2023 and another €100 million in March 2024.

Supported by common equity tier 1 capital of €234.1 million, the bank's capital adequacy ratio rose to 23.7% from 18.0% the previous year, due to internal capital generation through profitability and significant non-performing loan clean-up. The Core Tier 1 ratio, consisting solely of common equity, was 22.1% as of December 31, 2023.

The liquidity coverage ratio of AstroBank remained strong throughout the year, with a coverage ratio of 366% at the end of 2023 and a stable loans-to-deposits ratio of 43%.

The non-performing exposure ratio decreased to 14.9% as of December 31, 2023, from 19.8% on December 31, 2022, exclusively through organic clean-up, while the coverage ratio of provisions rose to 44.0% (2022: 46.1%).

Sales of real estate owned, direct and indirect, amounted to €43 million for the year 2023, of which €33.7 million represent direct sales. Total sales over the last three years amount to approximately €150 million.

During 2023, the capital adequacy ratios significantly improved from annual profits and the reduction of risk-weighted assets (RWAs), mainly due to the decrease in NPEs and loan repayments. The CET1 and Total Capital ratios stood at 22.1% and 23.7%, respectively, as of December 31, 2023, compared to 16.5% and 18.0% in 2022. The bank's capital adequacy ratios substantially exceed the minimum supervisory requirements.

As of December 31, 2023, the MREL ratio stood at 27.8% and meets the final binding target set by supervisory authorities at 26.0% effective as of December 31, 2024, which also includes an increase in the countercyclical buffer by 0.5% in June 2024.

The bank is committed to operating in a financially and socially sustainable manner. Towards this direction, it has developed and intends to implement an enhanced ESG program with significant improvements in the Governance Pillar, while also giving greater weight to the Environmental Pillar, in combination with AstroBank's already strong commitment to the Social Pillar. With primary goals of increasing energy efficiency and supporting customers in the green transition, AstroBank offers a wide range of environmentally friendly loan products, which, combined with the implementation of a plan to reduce Scope 1, 2, and 3 emissions (including funded emissions) and full integration of the environmental agenda into the bank's business model, form the core of the environmental pillar.

With the goal of remaining competitive and providing high-quality and efficient services to its customers, AstroBank continues to invest in technology and automation. In November 2023, the bank launched a new website and mobile banking application, thus providing an enhanced banking experience for its customers. By mid-2024, full digitization of the bank's cards is also expected. These moves are combined with a series of digitalization actions and integration of internal processes that will make customer service even more efficient. With the integrated new digital channels and a strong network at 14 locations across Cyprus, AstroBank aims to play a pivotal role in the banking sector of Cyprus.

"2023 was an exceptional year for AstroBank. The systematic efforts of recent years towards a focused business model, rationalization of operations, restructuring, and risk reduction of the balance sheet, combined with the favorable interest rate and macroeconomic environment, contributed to achieving strong financial results.

Our decisive actions allowed us to transform the bank into a strong and well-capitalized banking institution, capable of adding value to customers and shareholders. With supervisory capital nearly 24%, a broad presence across Cyprus, and modern digital channels, AstroBank plays a pivotal role in serving Cypriot businesses and individuals.

AstroBank announced strong profitability for the year 2023 with after-tax profits of €39.4 million euros excluding non-recurring items (€30.4 million net after-tax profits). The Own Funds amounted to €234.1 million while the total capital adequacy ratio was significantly enhanced through organic creation and increased to 23.7%.

We remain committed to our business plan, which in recent years has led to substantial operational efficiency, quality customer service, and improved profitability."