UPDATE: Bank of Cyprus losses revised up to 1.37 bln

 * GGB haircut raised from 60% to 74%; 237 mln in unsold rights must go by June *

Bank of Cyprus adjusted higher its losses for 2011, with the final audited results announced Tuesday showing total losses of 1.37 bln euros, up from 1.01 bln announced in the unaudited results end-February.
It said that the writedown on the nominal value of its Greek sovereign debt holdings was raised from the 60% estimated earlier to 74%, with the impairment set at 1.73 bln euros.
However, the bank said that it remains on track with its capital building that should give it a safe cushion of about 1.56 bln euros in time for the June deadline when all European banks must secure a higher capital buffer.
“The higher figure for losses does not change the need for further capital increase beyond what has already been planned,” a bank watcher told the Financial Mirror, adding that “the situation seems to be under control.”
“The bank has until June 18 to dispose of the 237 mln euros worth of unexercised rights to new shareholders and strategic investors at the same price as the public issue or higher. It also has the profits from the sale of Bank of Cyprus Australia (BOCA Ltd) to Bendigo and Adelaide Bank, the fourth quarter 2011 and first half 2012 profits, as well as the deleveraging of assets, all of which will prevent it from seeking further capital.”
Last month, the bank raised 594 mln euros in fresh funds from the exercise of a rights issue and the conversion of its Coco bonds, escaping the need for any government support. It said that 160 mln of its target 394 mln euros worth of rights were exercised by shareholders, while 434 mln of Cocos from the initial target of 600 mln were converted.