The bank said the final results included a 74 per cent write-down on its Greek bonds (GGBs), compared with 60 per cent in the preliminary results.
“The pre-tax impairment of GGBs, including related hedging costs, amounted to €1.7 billion for 2011 which represents 83 per cent of their nominal value,” the bank said.
The book value of the GGBs post-impairment amounted to €616 million on December 2011, BoC said.
Excluding the impairment of GGBs, the bank said it has achieved its profitability targets for the year, despite the continuing negative economic developments in its main markets of operation.
Profit before provisions and the impairment of GGBs reached €805 million, an 11 per cent increase from 2010.
Net profit, excluding the impairment of GGBs reached €312 million, BoC said.
BoC said it is proceeding with its capital strengthening plan to meet tougher regulatory requirements by the end of June.
So far it has raised €592 million through a rights issue and a voluntary exchange of convertible securities.
“In addition, the Group is strengthening its capital position in order to meet the minimum regulatory capital requirements, through its profitability and though other targeted actions, including the effective management of risk weighted assets and the completion of the sale of Bank of Cyprus Australia Ltd, which has contributed approximately €80 million to the Bank’s regulatory capital.”
Published on April 25, 2012