BBOOCCYY hhaass € 11..0099 bbllnn iinn CCHHFF llooaannss,, HHBB aan­ndd UUSSBB ‘‘uun­naafff­feec­ct­teedd’’

Financial Mirror (Cyprus) - - FRONT PAGE -

Bank of Cyprus said that the re­cent ap­pre­ci­a­tion of the Swiss franc against the Euro had no ma­te­rial im­pact on its for­eign cur­rency po­si­tion.

?As part of its over­all con­ser­va­tive risk man­age­ment strat­egy and ap­petite, the bank has a pol­icy of hedg­ing for­eign ex­change risk. Hence, the re­cent ap­pre­ci­a­tion of the CHF against the Euro had no ma­te­rial im­pact on the bank’s fi­nan­cial po­si­tion,” it said in an an­nounce­ment.

It added that as re­gards the im­pact from credit risk, “the bank’s lend­ing ex­po­sure in CHF to­talled 1.09 bln euros as at 31 De­cem­ber 2014 and ac­counted for about 4.6% of to­tal gross loans. The majority of th­ese loans were granted prior to 2011.”

Hel­lenic Bank said it re­mains un­af­fected by the changes to the CHF and the re­cent decision by the Swiss Na­tional Bank to lift the cap on the franc’s value against the euro. In re­sponse to a re­quest by the Cyprus Se­cu­ri­ties and Ex­change Com­mis­sion to all credit in­sti­tu­tions, Hel­lenic Bank said that the changes to the franc/euro ex­change rate are not ex­pected to sub­stan­tially af­fect the Group’s fi­nan­cial stand­ing and op­er­at­ing re­sults. “Thanks to sys­tem­atic risk hedg­ing and to the ef­fec­tive mech­a­nisms ap­plied, the bank is not ex­posed to such for­eign ex­change risks,” it said, adding that Hel­lenic does not par­tic­i­pate in, nor is it ex­posed to any com­pa­nies in­volved in on­line for­eign ex­change trad­ing.

USB Bank also is­sued a state­ment say­ing that the ap­pre­ci­a­tion of the CHF against the EUR “is not ex­pected to have a sig­nif­i­cant im­pact on its fi­nan­cial po­si­tion and on the bank’s re­sults.”

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.