Bank of Cyprus says no material impact from Swiss franc developments

Bank of Cyprus says no material impact from Swiss franc developments

Following the recent developments relating to the Swiss franc the Bank of Cyprus Public Company Ltd announced today that this development had no material impact on the Bank`s financial position.

In a press release, the Bank notes that 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 stresses.

As regards the impact from credit risk it points out that the Bank’s lending exposure in CHF totalled €1,09 bn as at 31 December 2014 and accounted for about 4,6% of total gross loans.

It is noted that the majority of these loans were granted prior to 2011.

As part of its credit risk management policy, the Bank monitors the performance of the portfolio and, if needed, will take additional provisions in line with its provisioning policy.

CNA/AAR/GV/2015
ENDS, CYPRUS NEWS AGENY