Marfin Popular Bank posts 2.5 bln euro loss on Greece

Cypriot lender Marfin Popular posted a record full-year net loss of 2.5 bln euros ($3.3 bln) on Wednesday, hit by a writedown to its Greek sovereign debt holdings.
The bank said it had factored in a 60% impairment in the value of its Greek bonds, writing off some 1.9 bln euros in their nominal value.
A week earlier, the island’s largest lender, Bank of Cyprus, announced a loss of 1 mln euros and said it had provided for a 60% haircut on its Greek bonds, although the European bailout plan concluded on a 53.5% impairment. Third biggest lender Hellenic announced a net loss of 99.5 mln euros on Tuesday, the bank with the smallest exposure to Greece, with only 110 mln euros of toxic bonds.
Marfin Popular submitted a rescue and capitalisation plan to the Central Bank of Cyprus in late January, providing for a safe cushion that will allow it to meet the Core Tier I ratios as required by the European Banking Agency. It is waiting for the central bank’s response in order to proceed with its plans and announce any new capital increase plan.
“In the context of the share capital increase, the Group has received serious interest from a number of credible strategic investors,” the bank announced, adding that “the Management of MPB is optimistic on achieving the Group capital enhancement.”
“Marfin Popular Bank has suffered significant losses stemming mainly from the private sector involvement (PSI+) in the Greek sovereign debt restructuring, but also from the ongoing poor Greek macroeconomic conditions,” said chairman and former Finance Minister Michael Sarris.
“We have acknowledged the problem in full transparency which enables us to embark on a new beginning,” he added.
“The early indications from the results of our efforts are particularly encouraging,” said Group CEO Christos Stylianides.
“With the successful implementation of the capital enhancement plan and the completion of the targeted actions at all levels, Marfin Popular Bank will be reinforced, to continue supporting households and businesses as well as the underlying economies where we operate.”