BOCY optimistic for stress test, rights

First Published:

23/07/2010 13:08:30

Bank of Cyprus Management expressed its optimism for the bank stress tests, few hours before the announcement of the results by CEBS. Speaking in front of the shareholders of the Bank, who backed the EGM proposal for an increase in the authorized capital, BOCY Chairman. Theodoros Aristodemou said that the bank is optimistic for the results. The EGM, which was attended by 2085 shareholders who represent 35% of the issued capital of the Bank, approved the increase in its authorized capital by €350 million to €1.1 billion. This increase led the way for the issue of a Tier 1 capital in autumn. As already announced, the bank will issue rights to absorb capital of €345 million. The mass presence of the shareholders during the EGM boosted confidence that the issue will be achieved despite the difficulties of the times. BOCY CEO, Andreas Eliades, said that the impressive participation of the shareholders is a message of support by both the institutional and the individual investors in the bank’s efforts. Mr. Aristodemou expressed his certainty that all shares resulting from the rights exercise will be absorbed and rejected proposal for an issue in two phases. On the question about the exploitation of the capital, Mr. Eliades referred to the difficult banking environment and said that “they strengthen the bank in a difficult period”. “I won’t tell you that difficulties have been left behind. We need to be very careful. In Cyprus, we have to deal with issues that are now in front of us so the bank must be strengthened and protected for the shareholders’ good”, he said. “In periods of crises, opportunities for those who have made plans are many and since the bank goes well, it is for our further development to several markets”, he said. He also described with optimism the course of the Group in all markets, stressing that “on an annual basis, the growth rate in Russia stands at 50-60%, while there are further margins. We have similar margins of growth in Australia too”, he noted. “Certain preliminary figures on the course of the bank’s activities in late June show that there is an increase in deposits from €28.5 billion in early 2010 to €32.5 billion”, he stressed. “The strong and powerful have opportunities that might be developed to the benefit of the shareholders”, he added. On the question whether Bank of Cyprus intends to play the game of mergers and acquisitions that started in Greece, Mr. Eliades answered that the bank’s strategy is to observe the developments, to be flexible and to take the proper decisions when the time comes.

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Related Companies

BANK OF CYPRUS PUBL. (CR) (BOCY)