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Roundup: Bank of Cyprus to leave Athens Stock Exchange, enlist with LSE

Xinhua, November 16, 2016 Adjust font size:

Bank of Cyprus, the largest lender of Cyprus that was saved by its depositors at the start of the 2013 economic crisis, said on Tuesday that it plans to soon apply for a listing on the London Stock Exchange and will leave the Athens Stock Exchange.

Bank of Cyprus said in a statement that it will continue to be listed on the Cyprus Stock Exchange.

"The listing on the London Stock Exchange is in line with the bank's long-term strategic commitment to list on a major European stock exchange," the statement said.

"It is expected to improve the liquidity of the bank's stock, which will enhance the bank's visibility and lead to a broader base of investors," the statement added.

Bank of Cyprus said the listing will be done through a holding company incorporated in Ireland, an EU member, which was chosen after the bank decided not to incorporate in the country following the Brexit decision.

The incorporation in Ireland was decided because the country has a legislation which is very similar to that of Britain.

Bank of Cyprus said in its statement that it has decided to delist from the Athens Stock Exchange since it has no major presence in Greece after it was forced by the European Banking Authority and the Eurogroup to sell its extensive banking network in Greece as a condition for Cyprus's bailout in March 2013.

Bank of Cyprus's Greek network provided the lender with a bigger turnover than its Cypriot operations.

Bank of Cyprus itself was made to recapitalize through the world's first bail-in, the seizing of 47.5 percent the unsecured deposits of its clients.

In another statement on Tuesday, the bank announced a net profit of 62 million euros (66.5 million U.S. dollars) in the first nine months of 2016, as against 73 million euros in the same period of last year. It said the reduction of its profits were due to increased provisions and a drop in business.

Bank of Cyprus has the largest share of non-performing loans after the breakout of the crisis and is also repaying an Emergency Liquidity Assistance loan from the European Central Bank -- a legacy of the wound-down Cyprus Popular Bank that was at the center of the Cyprus crisis.

The lender has said in its latest annual report that the 11 billion euros debt has been brought down to below 1 billion euros and will be wiped out within the next year. Endit