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Bank of Cyprus: $1.34 billion loss for 2011 after 60 pct writedown of Greek bond holdings

By The Associated Press  | February 21, 2012

NICOSIA, Cyprus - The Bank of Cyprus has reported an after-tax loss of €1.01 billion ($1.34 billion) for 2011 after including a 60 per cent writedown on its Greek government bond holdings.

In announcing its preliminary results for 2011 on Tuesday, the eurozone member's largest bank said that excluding the writedown, it made an after-tax profit of €312 million ($412.5 million) — a two per cent increase over the previous year.

But it says its final audited results "could potentially be materially different" depending on the outcome of Greece's debt-reducing bond swap with private creditors next month.

The bank says the value of its Greek bonds after the writedown amounts to €975 million ($1.29 billion). It said it's taking steps to significantly bolster its capital base.

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