REG - Bank of Cyprus Hldgs - BOCH Annual Financial Report 2022 Announcement

Bank of Cyprus HoldingsAnnouncement

31/03/2023 13:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230331:nRSe9881Ua&default-theme=true

RNS Number : 9881U  Bank of Cyprus Holdings PLC  31 March 2023

 

 

 

Announcement

 

Bank of Cyprus Holdings Public Limited Company

Annual Financial Report for the year ended 31 December 2022

 

Nicosia, 31 March 2023

 

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 2022 (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 inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)

The Annual Financial Report will also be available on the Group's website
www.bankofcyprus.com (http://www.bankofcyprus.com) (Group/Investor Relations).

 

For further information, please contact Investor Relations at
investors@bankofcyprus.com (mailto:investors@bankofcyprus.com) .

 

Additional Information

 

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 2022 dated 31 March 2023, 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 Financial
Report.

 

 

Additional Information (continued)

Principal risks and uncertainties - Risk management and mitigation

 

The following information is extracted from pages 36 to 37 of the Annual
Financial Report.

 

As part of its business activities, the Group faces a variety of risks. The
Group monitors, manages and mitigates these risks through various control
mechanisms. Credit risk, liquidity and funding risk, market risk (arising from
adverse movements in foreign currency exchange rates, interest rates, security
prices and property prices) and insurance and re-insurance risk, are some of
the key significant risks the Group faces.  In addition, key risks facing the
Group include operational risk which includes also compliance, legal and
reputational risk, regulatory risk, information security and cyber risk,
digital transformation and technology risk as well as business model and
strategic risk.

 

Information relating to the principal risks the Group faces and risk
management is set out in Notes 45 to 48 of the Consolidated Financial
Statements and in the 'Risk and Capital Management Report', both of which form
part of the Annual Financial Report for the year ended 31 December 2022 and in
the 'Pillar III disclosures 2022'. In addition, in relation to legal risk
arising from litigations, investigations, claims and other matters, further
information is disclosed in Note 39 of the Consolidated Financial Statements.

 

Additionally, the Group is exposed to the risk of changes in the 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
for 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
Statements.

 

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 and changes in the
macroeconomic conditions and geopolitical developments as described in the
'Risk and Capital Management Report' which forms part of the Annual Financial
Report for the year ended 31 December 2022.

 

In addition, details of the significant and other 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.

 

The invasion of Russia in Ukraine and the sanctions imposed on Russia raised
new challenges for the Group and the developments are closely monitored. The
Group's direct exposure is limited, however any indirect impact will depend on
the duration and severity of the crisis in Ukraine and its impact on the
Cypriot economy, mainly due to a negative impact on the tourism sector, the
increasing energy prices resulting in inflationary pressures and disruptions
to global supply chains. Further disclosures are provided in 'Business
Overview' and 'Operating Environment' sections of this Director's Report.

 

The risk factors discussed above and in the reports referenced above should
not be regarded as a complete and comprehensive statement of all potential
risks and uncertainties. There may be risks and uncertainties of which the
Group is not aware or which the Group does not consider significant, but which
may become significant. The challenging conditions in global markets arise due
to factors including the Ukraine-Russian war, high interest rate environment,
inflationary pressures, COVID-19, the growing threat from cyberattacks and
other unknown risks. As a result the precise nature of all risks and
uncertainties that the Group faces cannot be predicted as many of these risks
are outside of the Group's control.

Additional Information (continued)

Principal risks and uncertainties - Risk management and mitigation (continued)

 

Details of the financial instruments and hedging activities of the Group are
set out in Note 21 of the Consolidated Financial Statements. Further
information on financial instruments is also presented in Notes 45-46 of the
Consolidated Financial Statements.

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
(http://www.bankofcyprus.com) (Group/Investor Relations).

 

Related party transactions

 

The following information is extracted from pages 302 to 308 of the Annual
Financial Report, unless otherwise indicated.

 

Related parties of the Group include associates and joint ventures, key
management personnel, members of the Board of Directors and their connected
persons. Connected persons for the purpose of this disclosure include spouses,
minor/dependent 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 any way.

 

Related parties also include entities providing key management personnel
services to the Group.

 

(a)        Transactions with subsidiaries

 

The Company is the holding company of the Group. The Company enters into
transactions with its subsidiaries in the normal course of business. Balances
and transactions between the Company and its subsidiaries are disclosed in
Note 17 of the Company's financial statements. Transactions with the
subsidiaries have been eliminated on consolidation.

 

(b)        Transactions with associates

 

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 52.

 

(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 the deposits, loans and advances and other credit balances
held by the members of the Board of Directors and key management personnel and
their connected persons, as at the balance sheet date and other relevant
information as required by the Companies Act 2014, please refer to Note 50 (d)
of the Consolidated Financial Statements.

Additional Information (continued)

Related party transactions (continued)

 

Loans to Directors

 

The following information is presented in accordance with the Companies Act
2014. For the purposes of the Companies Act 2014 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.

There were 12 Directors in office during the year (2021: 12 Directors), 4 of
whom availed of credit facilities (2021: 4 Directors). All of the Directors
who availed of credit Facilities had balances outstanding at 31 December 2022
and 31 December 2021.

For their balances outstanding, please refer to Note 50 (d) of the
Consolidated Financial Statements.

 

The value of arrangements at the beginning and end of the current and
preceding financial years as stated below, 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% in accordance with section 307 of the
Companies Act 2014.

 

Key management personnel in office during the year (and their connected
persons)

 

There were 21 key management personnel in office during the year (2021: 17 key
management personnel), 20 of whom availed of credit facilities (2021: 16 key
management personnel). All of the key management personnel who availed of
credit facilities had balances outstanding at 31 December 2022 and 31 December
2021.

 

A number of loans and advances have been extended to key management personnel
on the same terms as those applicable to the rest of the Group's employees and
to their connected persons on the same terms as those of customers of a
similar credit standing.

 

Where no amount is shown in the tables below, this indicates a credit balance,
a nil balance, or a balance of less than €500.

 

For further details of transactions with key management personnel and their
connected persons, please refer to Note 50 (d) of the Consolidated Financial
Statements.

 

For further information on related party transactions please refer to Note 50
of the Consolidated Financial Statements.

 

Statement of Directors' Responsibilities

 

The following information is extracted from pages 47 to 48 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, the EU (Credit
Institutions: Financial Statements) Regulations 2015

Additional Information (continued)

Statement of Directors' Responsibilities (continued)

 

and, in respect of the consolidated financial statements, Article 4 of the
International Accounting Standards (IAS) Regulation. Company law requires the
Directors to prepare Group and Company financial statements for each financial
year.

 

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 and otherwise comply with the Companies Act 2014.

 

In preparing these financial statements, the Directors are required to:

·    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 adopted by the EU and ensure that they contain the
additional information required by the Companies Act 2014; and

·    prepare the financial statements on a going concern basis unless it
is inappropriate to presume that the Group and 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 Stasinos Street,
2002, Strovolos, 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 2022
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
other irregularities.

 

Under applicable law and the requirements of the Listing Rules issued by the
London Stock Exchange, the Directors are also responsible for preparing a
Directors' Report and reports relating to Directors' remuneration and
corporate governance. The Directors are also required by the Transparency
(Directive 2004/109/EC) Regulations 2007, as amended Part 2 (Transparency
Requirements) of the Central Bank (Investment Market Conduct) Rules 2019 and
the Disclosure Guidance and Transparency Rules of the UK's Financial Conduct
Authority 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 on the Company's website.
Legislation in Ireland governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.

 

Additional Information (continued)

Statement of Directors' Responsibilities (continued)

 

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 the Annual Financial Report 2022
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 2022 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 strategy.

 

 

 

 

 

Group Profile

 

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. At 31
December 2022, the Bank of Cyprus Group operated through a total of 64
branches in Cyprus, of which 4 operated as cash offices. The Bank of Cyprus
Group employed 2,889 staff worldwide. At 31 December 2022, the Group's Total
Assets amounted to €25.4 bn and Total Equity was €2.1 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.
 

 

 

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. The Russian invasion of Ukraine
has led to heightened volatility across global markets and to the coordinated
implementation of sanctions on Russia, Russian entities and nationals. The
Russian invasion of Ukraine has caused significant population displacement,
and as the conflict continues, the disruption will likely increase. The scale
of the conflict and the extent of sanctions, as well as the uncertainty as to
how the situation will develop, may have significant adverse effects on the
market and macroeconomic conditions, including in ways that cannot be
anticipated. This creates significantly greater uncertainty about
forward-looking statements. 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACSBBGDXRSXDGXB