Chairman of the Board of Directors of Hellenic Bank IN Cyprus Andreas Panayiotou has said that the Hellenic Bank recorded losses amounting to 87 million euro, before taxation, for the year ending December 31, 2011 compared with earnings of 15 million euro in 2010, following the impairment of Greek Government Bonds.
In his address at the 38th shareholders' Annual General Meeting held here on Wednesday, Panayiotou noted that the Hellenic Bank Group having carefully and rationally developed its activities and by exploiting every comparative advantage that it owns, it has managed to properly confront the challenges of the economic environment and the consequences of the financial crisis.
The Group, he added, acting proactively and receiving the messages of markets, it prudently manages its investments and has maintained a satisfactory level of liquidity throughout 2011
In particular, he said that in 2011, in a very sluggish economic environment, the Group recorded a 12% increase in revenues and 6% decrease in expenses compared with 2010 and an increase of 4% in loans and deposits in relation to the previous year.
He said that the Group’s profit on 31 December 2011 before provisions (excluding the cost of impairment of Greek government bonds) amounted to 133 million euro, recording an increase of 47% compared with the same period last year.
For the year ending on 31 December 2011, he continued, the Hellenic Bank Group wrote off 77 million euro which represented 70% of the nominal value of the Greek government bonds it held, which amounted to 110 million euro.
Panayiotou added that ''taking into account the impairment of Greek government bonds, the Hellenic Bank Group on 31 December 2011 recorded losses, before taxation, of 87 million euro compared with profits of 15 million euro in 2010.
Referring to the developments in Greece, he said that ''their consequences, including the possibility that Greece leaves the eurozone and returns to drachma, are monitored on a regular basis and the Group's policy is adjusted to the circumstances and the necessary measures are taken always having in mind the best interests of the Group.
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