ECONOMY

Bank of Cyprus reports 1.8-bln-euro net loss for H1

Bank of Cyprus, the lender forced to seize client deposits to recapitalize in March, reported a 1.8-billion-euro net loss for the first half of the year, impacted by its forced disposal of Greek operations and rising provisions.

The bank was one of three Cypriot lenders forced to sell its Greek operations in March in an attempt to ringfence the eurozone from contagion from a messy international bailout for the island.

Bank of Cyprus made a loss of 134 million euros a year earlier, since when it has been transformed by the forced acquisition of assets of now-defunct Laiki Bank and the Greek asset disposal this year.

Meanwhile the lender has called on a second former senior banker from Royal Bank of Scotland to lead its restructuring following this year’s international bailout of Cyprus.

Euan Hamilton, formerly deputy chief executive of RBS’s “non-core division,” has joined Bank of Cyprus as a consultant to specifically look at the delinquency, restructuring and recoveries of loans.

Getting to grips with Bank of Cyprus’s bad loans is seen as the key issue for its new chief executive, John Hourican, the former RBS investment bank boss who was appointed last month.

[Reuters]