Bank of Cyprus (BoC), the island’s largest financial institution, reported a one billion euro ($1.32 billion) loss for 2011 after a write-down of Greek government debt.
It said that, after a 60 percent impairment of the nominal value of Greek government bonds, losses after tax amounted to 1.01 billion euros for 2011 compared to a 306 million euro profit in 2010.
But minus the bond impairment, net profit increased two percent to 312 million euros while profit before impairment and provision for bad debts amounted 805 million.
“The group achieved the profitability targets set for 2011, excluding the impairment of Greek Government Bonds (GGBs),” a statement said.
This came “despite the continuing negative economic developments in the main markets in which it operates, and achieving increased profit before provisions and increased profit before tax and impairment,” it added
The bank said final audited financial results could potentially be materially different from preliminary figures “due to the final determination of the impact of the Private Sector Involvement scheme for the restructuring of Greek public debt.
The bank said it has a “healthy” liquidity position, with a loans-to-deposit ratio of 92 percent, minimal repayments of debt obligations in the next two years and minimal reliance on wholesale funding.
The ratio of deposits to total assets was 78 percent.
BoC operates a total of 583 branches of which 199 are in Russia, 188 in Greece, 137 in Cyprus, 42 in Ukraine, 12 in Romania and four in Britain, and employs 11,326 staff.
(source: news.ph)
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