Losses of 1,011 billion for the Bank of Cyprus due to Greece

However, according to the summary of the results, the Group realized the profit targets it had set for 2011, with the exception of the impairment of Greek Government Bonds (OED), as despite the continuing negative developments in the main markets in which it operates, and achieved increased profits before the forecasts and increased profits before tax and impairment of DSB for 2011.

Specifically, earnings before provisions and impairment of DSB amounted to 805 million euros, marking a significant increase of 11% compared to 725 million euros in 2010 and profits after tax excluding impairment of DSB amounted to 312 million euros, compared to 306 million for 2010 recording an increase of 2%.

Regarding the DSBs, the Group has reduced the book value of the DSBs it holds by 60% of their nominal value. The impairment of DSB after tax, including the relevant hedging costs, amounted to 1.323 million euros for 2011. At 31 December 2011 the book value of DSB after impairment amounts to 975 million euros.

The Group also strengthens its capital base with the Capital Aid Plan which is expected to be completed in March 2012 and which includes the Issuance of Pre-emptive Rights up to 397 million euros and the voluntary exchange of Convertible Securities with enhanced Capital up to new 600 euros. . At the same time, Bank of Cyprus is taking other steps to strengthen its capital adequacy ratios, including the effective management of weighted assets as well as its capital gains, in order to meet the required regulatory capital ratios.

In addition, for the further capital increase and the increase of its liquid assets, the Group signed on December 16, 2011 a binding agreement for the sale of the subsidiary bank in Australia, Bank of Cyprus Australia Ltd with the positive contribution from the sale to the Group's supervisory capital. to approximately € 77 million and the sale is expected to boost the Group's cash and cash equivalents by approximately € 250 million.

Always in accordance with the preliminary results of the Group and subject to the successful implementation of the Capital Aid Plan as a whole, the indicative indices of fixed own funds and basic own funds on December 31, 2011 would amount to 9,1% and 10,5%. respectively.

In a joint statement, the Chairman of the Board of Directors of the Bank Theodoros Aristodimou and the CEO of the Group Andreas Iliadis emphasize that in a period of ongoing financial crisis in the main European markets in which it operates, the Bank of Cyprus Group has successfully profits before the provisions and the impairment of Greek Government Bonds (DSB) amount to 805m. euro, recording an annual increase of 11%, but also that the Group also maintains healthy liquidity with the ratio of loans to deposits amounting to 92%.

They point out that the Group continues to focus on maintaining its organic profitability, sound liquidity, adequate capital adequacy and effective risk management, in order to meet the challenges of the negative economic environment and the ongoing crisis in the Eurozone.

They assure that with the completion of the capital increase program and the very satisfactory liquidity it has, the Group will continue to actively support its customers and the economy.

Bank of Cyprus operates through 583 branches, of which 199 operate in Russia, 188 in Greece, 137 in Cyprus, 42 in Ukraine, 12 in Romania, 4 in the United Kingdom and 1 in the Channel Islands. In addition, the Bank operates 6 representative offices in Russia, Romania, Ukraine, Serbia and South Africa.

The Group employs 11.326 people internationally.

As at 31 December 2011, the Group's Total Assets amounted to € 37,84 billion and its Equity to € 2,70 billion.

Source: KYPE