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The bank had a balance sheet valued at more than €1.3 trillion at the end of last year.
Banking assets in Cyprus reached seven times G.D.P., with the Bank of Cyprus having a balance sheet valued at roughly twice Cypriot G.D.P. and Laiki only slightly smaller (see the investor relations presentations linked above, with more background at Figure 3 in this paper).
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This explains the raising of capital to marginally reduce the risks inherent to each of their balance sheets, valued into the hundreds of billions of dollars.
JPMorgan paid 2.25percentt more than the assets' balance sheet value.
The stake had a balance sheet value of €204m (£180m).
Typically a multiple of annual profits will be used to generate a balance sheet value".
Taking the above scenario and assuming current balance sheet value for pension deficit...would increase valuation to around £17.5 a share.
An activist group of existing and former policyholders, the Norwich Union Policyholders Action Group NUPAGAG), said on Thursday: "[The] results suggest that at the end of 2011 some balance sheet values were massively overstated".
As such we reiterate our 7p target price reflecting the group's balance sheet value per share of its shareholding in Matthew Clark, the drink's distribution business; hold.
Virgin Media posted a wider quarterly loss of £50 million after it slashed the balance sheet value of its home shopping business.
But after slashing the balance sheet value of hundreds of struggling pubs, it slid to a £159m loss last year and had to make interest payments on its debts of £260m.
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