Bank of Cyprus posts €438m loss for 2015

The Pak Banker - - FRONT PAGE -

Bank of Cyprus, the is­land's largest len­der, Fri­day posted a post-tax loss of 438 mil­lion euros for 2015 af­ter hav­ing in­creased pro­vi­sions for bad loans as in­structed by the EU. "Due to the el­e­vated pro­vi­sions for the quar­ter, the Group re­ported a loss af­ter tax of 438 mil­lion ($483 mil­lion) for the year," Bank of Cyprus CEO John Pa­trick Hourican said in a state­ment.

"Nev­er­the­less, the Group con­tin­ues to have a strong cap­i­tal po­si­tion ... The Group does not ex­pect to need to raise cap­i­tal to com­plete its jour­ney back to strength," he said.

Bank of Cyprus (BoC) said it had re­duced emer­gency liq­uid­ity as­sis­tance ( ELA) in the fourth quar­ter to 3.5 bil­lion euros, al­most 8 bil­lion lower than the peak of 11.4 bil­lion in April 2013. "The Group con­tin­ues to make good progress against its strate­gic ob­jec­tives," said Hourican.

In March 2013, Cyprus clinched a 10-bil­lion-euro ($13 bil­lion at the time) loan from the Euro­pean Union and In­ter­na­tional Mon­e­tary Fund to bail out its trou­bled econ­omy and bloated bank­ing sys­tem. Un­der the deal, the govern­ment was re­quired to close the is­land's se­cond-largest bank, Laiki, and im­pose a 47.5 per­cent "hair­cut" on de­posits above 100,000 euros at BoC.

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