RNS Number : 9308T
Bank of Cyprus Holdings PLC
30 March 2021
Bank of Cyprus Holdings Public Limited Company
Annual Financial Report for the year ended 31 December 20 20
Nicosia, 30 March 2021
Bank of Cyprus Holdings Public Limited Company ("BOC Holdings"
or the "Company") announces today that its Board of Directors has
approved its annual financial report including the audited
financial statements of the Bank of Cyprus Group, comprising BOC
Holdings, its subsidiary Bank of Cyprus Public Company Limited and
its subsidiaries (the "Group") for the year ended 31 December 2020
(the "Annual Financial Report").
A copy of the Annual Financial Report will be submitted to the
National Storage Mechanism and will be shortly available for
The Annual Financial Report will also be available on the
Group's website www.bankofcyprus.com (Investor Relations).
For further information, please contact Investor Relations at
The following information is extracted from the Company's Annual
Financial Report and, together with the Company's announcement
'Group Financial Results for the year ended 31 December 2020' dated
30 March 2021, constitutes the material required under Regulation
33(5)(b)(ii) of the Irish Transparency (Directive 2004/109/EC)
Regulations 2007 to be communicated to the media in unedited full
text. This material is not a substitute for reading the Company's
Annual Financial Report in full. Terms in this section Additional
Information shall have the meanings given to them in the Annual
Principal risks and uncertainties - Risk management and
The following information is extracted from page 36 of the
Annual Financial Report.
Like other financial organisations, the Group is exposed to
risks, the most significant of which are credit risk, liquidity
risk, market risk (arising from adverse movements in exchange
rates, interest rates and security prices) and insurance risk. The
Group monitors, manages and mitigates these risks through various
control mechanisms. Detailed information relating to Group risk
management is set out in Notes 45 to 48 to the Consolidated
Financial Statements, in the 'Additional Risk and Capital
Management Disclosures' which form part of the Annual Financial
Report for the year ended 31 December 2020 and Pillar III
Disclosures for the year ended 31 December 2020.
The Group is also exposed to litigation risk, arising from
claims, investigations, regulatory and other matters. Further
information is disclosed in Note 39 to the Consolidated Financial
Additionally, the Group is exposed to the risk on changes in the
fair value of property which is held either for own use or as stock
of property or as investment property. Stock of property is
predominately acquired in exchange of debt and is intended to be
disposed of in line with the Group's strategy. Further information
is disclosed in Note 27 to the Consolidated Financial
The Group activities are mainly in Cyprus therefore the Group's
performance is impacted by changes in the Cyprus operating
environment as described in the 'Operating environment' section of
this Directors' Report.
In addition, details of the significant judgements, estimates
and assumptions which may have a material impact on the Group's
financial performance and position are set out in Note 5 to the
Consolidated Financial Statements.
Details of the financial instruments and hedging activities of
the Group are set out in Note 21 to the Consolidated Financial
The COVID 19 and its longer term impacts on the economy and the
Group's financial performance remain uncertain. Specifically, COVID
19 could have an adverse impact across risks including the credit
portfolio, operational risk, people, capital, funding and
liquidity. The Group is closely monitoring the effects of COVID 19
and impact on its operations, businesses and financial performance,
including liquidity and capital usage. The effects of COVID 19 are
described in the 'Business Overview' section of this Directors'
The Pillar 3 Disclosures Report (unaudited) of the Group,
required with respect to the requirements of the Capital
Requirement Regulation (EU) No 575/2013, is published on the
Group's website www.bankofcyprus.com (Investor Relations).
Related party transactions
The following information is extracted from pages 226 to 232 of
the Annual Financial Report, unless otherwise indicated.
Related parties of the Group include associates and joint
ventures, key management personnel, Board of Directors and their
(a) Transactions with subsidiary
The Company is the holding company of the Group. The Company
enters into transactions with its subsidiary in the normal course
of business. Balances and transactions between the Company and its
subsidiaries are disclosed in Note 15 of the Company's financial
statements. Transactions with the subsidiaries have been eliminated
The Group provides to and receives from its associates certain
banking and financial services. These are not material to the Group
and all the transactions are made on normal business terms as for
comparable transactions with customers of a similar standing.
Additional information is disclosed in Note 53.
(c) Compensation of the Board of Directors and key management personnel
For disclosures made in accordance with the provisions of IAS 24
Related Party Disclosures and sections 305 and 306 of the Companies
Act 2014, in respect of the compensation of the Board of Directors
and key management personnel, please refer to Note 50 (c) of the
Consolidated Financial Statements.
(d) Transactions with Directors and key management personnel
For information on Transactions with Directors and key
management personnel please refer to Note 50 (d) of the
Consolidated Financial Statements.
Loans to Directors
The following information is presented in accordance with the
Companies Act 2014. For the purposes of the Companies Acts
disclosures, 'Directors' means the current Board of Directors of
the Company and any past directors who were members of the Board of
Directors of the Company during the year.
All transactions with members of the Board of Directors and
their connected persons are made on normal business terms as for
comparable transactions, including interest rates, with customers
of a similar credit standing. A number of loans and advances have
been extended to other key management personnel on the same terms
as those applicable to the rest of the Group's employees and their
connected persons on the same terms as those of customers.
Connected persons include spouses, minor children and companies
in which directors/other key management personnel, hold directly or
indirectly, at least 20% of the voting shares in a general meeting,
or act as executive director or exercise control of the entities in
Additional to members of the Board of Directors, related parties
include entities providing key management personnel services to the
Directors: There were 11 Directors in office during the year
(2019: 14 Directors), three of whom availed of credit facilities
(2019: four Directors). Two of the Directors who availed of credit
Facilities had balances outstanding at 31 December 2020 (2019:
For their balances outstanding, please refer to Note 50 (d) of
the Consolidated Financial Statements.
Key management personnel: There were 18 key management personnel
in office during the year (2019: 20 key management personnel), 17
of whom availed of credit facilities (2019: 18 key management
personnel). All of the key management personnel who availed of
credit facilities had balances outstanding at 31 December 2020 and
31 December 2019.
Where no amount is shown in the tables below, this indicates a
credit balance, a balance of nil, or a balance of less than
The value of arrangements at the beginning and end of the
current and preceding financial years as stated below in accordance
with section 307 of the Companies Act 2014, expressed as a
percentage of the net assets of the Group at the beginning and end
of the current and preceding financial years is less than 1%.
For further information please refer to Note 50 of the
Consolidated Financial Statements.
Statement of Directors' Responsibilities
The following information is extracted from pages 43 to 44 of
the Annual Financial Report.
The Directors are responsible for preparing the Annual Financial
Report and the financial statements in accordance with
International Financial Reporting Standards (IFRS) adopted by the
EU and with those parts of the Companies Act 2014 applicable to
companies reporting under IFRSs and, in respect of the consolidated
financial statements, Article 4 of the International Accounting
Standards (IAS) Regulation.
Under Irish law the Directors shall not approve the financial
statements unless they are satisfied that they give a true and fair
view of the Group's and Company's assets, liabilities and financial
position as at the end of the financial year and of the profit or
loss of the Group and the Company for the financial year.
In preparing these financial statements, the Directors are
-- select suitable accounting policies and apply them consistently;
-- make judgements and estimates that are reasonable and prudent;
-- state whether the financial statements have been prepared in
accordance with IFRSs as adopted by the EU and ensure that they
contain the additional information required by the Companies Act
-- prepare the financial statements on a going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions, to disclose with reasonable accuracy at any time the
assets, liabilities and financial position of the Company and
enable them to ensure that the financial statements comply with the
provisions of the Companies Act 2014 and Article 4 of IAS
Regulation. The Directors, through the use of appropriate
procedures and systems, have also ensured that measures are in
place to secure compliance with the Company's and the Group's
obligations to keep adequate accounting records. These accounting
records are kept at the Company's registered office at 10 Earlsfort
Terrace, Dublin 2, D02 T380, Ireland and at 51 Stassinos Street,
Ayia Paraskevi, Strovolos, P.O.Box 24884, 1398 Nicosia, Cyprus.
In compliance with section 283 of the Companies Act 2014, the
information and returns relating to the business dealt with in the
accounting records for 2020 has been sent to the registered office
of the Company. The Directors are also responsible for safeguarding
the assets of the Group and the Company and hence for taking
reasonable steps for the prevention and detection of fraud and
Under applicable law and regulations, the Directors are also
responsible for preparing a Directors' Report. The Directors are
also required by the Transparency (Directive 2004/109/EC)
Regulations 2007 and the Central Bank (Investment Market Conduct)
Rules 2019 to include a Directors' report containing a fair review
of the development and performance of the business and the position
of the Group and a description of the principal risks and
uncertainties facing the Group.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included in the
Company's website. Legislation in Ireland governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
The Directors confirm that, to the best of each Director's
knowledge and belief:
-- they have complied with the above requirements in preparing the financial statements;
-- the financial statements, prepared in accordance with IFRSs
as adopted by the EU, give a true and fair view of the assets,
liabilities and financial position of the Group and the Company and
of the profit or loss of the Group and the Company;
-- the Directors' report contained in Annual Financial Report
2020 includes a fair review of the development and performance of
the business and the position of the Group and the Company,
together with a description of the principal risks and
uncertainties that they face; and
-- the Annual Financial Report 2020 and the financial
statements, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to assess
the Group's position and performance, business model and
Forward Looking Statements
This document contains certain forward-looking statements which
can usually be identified by terms used such as "expect", "should
be", "will be" and similar expressions or variations thereof or
their negative variations, but their absence does not mean that a
statement is not forward-looking. Examples of forward-looking
statements include, but are not limited to, statements relating to
the Group's near term, medium term and longer term future capital
requirements and ratios, intentions, beliefs or current
expectations and projections about the Group's future results of
operations, financial condition, expected impairment charges, the
level of the Group's assets, liquidity, performance, prospects,
anticipated growth, provisions, impairments, business strategies
and opportunities. By their nature, forward-looking statements
involve risk and uncertainty because they relate to events, and
depend upon circumstances, that will or may occur in the future.
Factors that could cause actual business, strategy and/or results
to differ materially from the plans, objectives, expectations,
estimates and intentions expressed in such forward-looking
statements made by the Group include, but are not limited to:
general economic and political conditions in Cyprus and other
European Union (EU) Member States, interest rate and foreign
exchange fluctuations, legislative, fiscal and regulatory
developments, information technology, litigation and other
operational risks, adverse market conditions, the impact of
outbreaks, epidemics or pandemics, such as the COVID-19 pandemic
and ongoing challenges and uncertainties posed by the COVID-19
pandemic for businesses and governments around the world. Should
any one or more of these or other factors materialise, or should
any underlying assumptions prove to be incorrect, the actual
results or events could differ materially from those currently
being anticipated as reflected in such forward looking statements.
The forward-looking statements made in this document are only
applicable as at the date of publication of this document. Except
as required by any applicable law or regulation, the Group
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward looking statement
contained in this document to reflect any change in the Group's
expectations or any change in events, conditions or circumstances
on which any statement is based.
Group Prof i le
The Bank of Cyprus Group is the leading banking and financial
services group in Cyprus, providing a wide range of financial
products and services which include retail and commercial banking,
finance, factoring, investment banking, brokerage, fund management,
private banking, life and general insurance. The Bank of Cyprus
Group operates through a total of 95 branches in Cyprus, of which
11 operate as cash offices. Bank of Cyprus also has representative
offices in Russia, Ukraine and China. The Bank of Cyprus Group
employs 3,573 staff worldwide. At 31 December 2020, the Group's
Total Assets amounted to EUR21.5 bn and Total Equity was EUR2.1 bn.
The Bank of Cyprus Group comprises Bank of Cyprus Holdings Public
Limited Company, its subsidiary Bank of Cyprus Public Company
Limited and its subsidiaries.
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(END) Dow Jones Newswires
March 30, 2021 02:02 ET (06:02 GMT)