HFSF hold­ing in banks sinks to

Financial Mirror (Cyprus) - - FRONT PAGE -

The state bank res­cue fund, the Hel­lenic Fi­nan­cial Sta­bil­ity Fund (HFSF), re­vealed a profit of 1.45 bln eu­ros for the first quar­ter of the year, but the value of it’s share­hold­ings in Greece’s core lenders has dropped dra­mat­i­cally.

The amount re­ported in the HFSF Q1 fi­nan­cial state­ments is at­trib­uted to ac­count­ing gains (un­re­alised cap­i­tal gains) of 1.43 bln eu­ros from bank hold­ings and war­rants.

In par­tic­u­lar, the gains from the reval­u­a­tion of HFSF’s par­tic­i­pa­tion in the four sys­temic banks stood at 2.5 bln eu­ros in Q1, while the neg­a­tive im­pact from the in­crease in the val­u­a­tion of war­rants amounted to 1.08 bln.

The fair value of HFSF share­hold­ings rose to 25.1 bln eu­ros at the end of March from 22.6 bln at the end of last De­cem­ber. Nev­er­the­less, the cur­rent fair value has dropped to 18.5 bln.

The move­ment re­flects the banks’ stock per­for­mance on the Athens Stock Ex­change, which soared 13.1% in Q1 but has plunged 23.3% since then.

This means that the 2.5 bln eu­ros of ac­count­ing gains in Q1 re­versed to un­re­alised cap­i­tal losses of 6.6 bln since then and will bur­den the Q2 re­sult ac­cord­ingly.

HFSF eq­uity in­creased to 35.87 bln eu­ros from 34.42 bln at the end of 2013 re­flect­ing a re­duc­tion of the ac­cu­mu­lated deficit by the pe­riod profit. As stated in the 2013 an­nual re­port, HFSF eq­uity cor­re­sponds to the po­ten­tial re­cov­ery value of the orig­i­nal paid up cap­i­tal of 49.7 bln eu­ros. The dif­fer­ence of cur­rent eq­uity to cap­i­tal is at­trib­uted to the cu­mu­la­tive loss of 11.3 bln eu­ros stem­ming from the res­o­lu­tion of non-core banks and the ac­count­ing im­pact of

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