Bank of Cyprus reveals losses it had before rescue

AP News
Posted: Oct 11, 2013 11:05 AM

NICOSIA, Cyprus (AP) — Cyprus' largest bank had racked up after-tax losses of 2.2 billion euros ($3 billion) in 2012, three months before it was swept up in the country's painful financial rescue deal.

Bank of Cyprus' financial results released Friday showed that the lender's core tier 1 ratio — a measure of a bank's financial health — sank to minus 1.9 percent by year's end, far below the EU-mandated 9 percent.

The losses were due mainly to a rising number of bad loans.

Cyprus' bailout deal in March with its eurozone partners and the International Monetary Fund forced uninsured depositors to take huge losses on their savings in the Bank of Cyprus and the smaller Laiki bank, which was wound down and partly absorbed by the larger lender.