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

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.”