The three major banks of Cyprus -- Bank of Cyprus, Marfin Popular Bank and Hellenic Bank, on Wednesday announced massive losses in their first-half performances this year.
Bank of Cyprus, the biggest lender among the three banks, said its net losses amounted to 112 million euros (about 162 million U.S. dollars), while Marfin, which has been more extensively exposed to the Greek debt crisis, announced a net loss of 196.9 million euros (about 284 million U.S. dollars).
Hellenic Bank also said its losses amounted to 36 million euros the first half of this year, compared to a first-half net profit of 11.4 million euros last year.
In the meantime, the Bank of Cyprus said it should be able to report a net profit by the end of the year, as it "remains in a strong position to face the challenges of the ongoing negative environment in the main European markets," it said. The bank had a profit of 306 million euros last year.
Marfin Popular Bank also said its 196.9 million euros net loss would have been a net profit of 77.1 million euros excluding participation in the Greek Government Bonds swap. This would have been an increase in profit compared to a 52.6-million-euro profit during the same period last year.
Cypriot banks hold about 5 billion euros worth of Greek bonds.
Major international rating agencies had repeatedly downgraded Cyprus' credit ratings over the past months, citing the exposure of the Cyprus banking system to the Greek debts.
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Bank of Cyprus, the biggest lender among the three banks, said its net losses amounted to 112 million euros (about 162 million U.S. dollars), while Marfin, which has been more extensively exposed to the Greek debt crisis, announced a net loss of 196.9 million euros (about 284 million U.S. dollars).
Hellenic Bank also said its losses amounted to 36 million euros the first half of this year, compared to a first-half net profit of 11.4 million euros last year.
In the meantime, the Bank of Cyprus said it should be able to report a net profit by the end of the year, as it "remains in a strong position to face the challenges of the ongoing negative environment in the main European markets," it said. The bank had a profit of 306 million euros last year.
Marfin Popular Bank also said its 196.9 million euros net loss would have been a net profit of 77.1 million euros excluding participation in the Greek Government Bonds swap. This would have been an increase in profit compared to a 52.6-million-euro profit during the same period last year.
Cypriot banks hold about 5 billion euros worth of Greek bonds.
Major international rating agencies had repeatedly downgraded Cyprus' credit ratings over the past months, citing the exposure of the Cyprus banking system to the Greek debts.
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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.