On 15 September BOV issued an update to its Interim Directors’ Statement published on 1 August following the collapse of Lehman Brothers.
In its 1 August Interim Statement, BOV had stated that it experienced ‘a very modest write back on some of the financial markets investment portfolio position mark downs that had taken place earlier in the year’. Moreover the Directors’ expected the second half of the year to show a marked improvement over the first half.
However, the recent collapse of Lehman Brothers resulted in greater volatility and the widening of spreads in the global credit markets. Consequently these conditions will have a material adverse effect on the financial results of the Bank for the last quarter of their financial year to 30 September. Furthermore, BOV’s investment portfolio includes a holding of Senior (non-subordinated) paper of Lehman brothers. However, the Directors noted that any losses that may arise in this respect will be modest in the context of the Bank’s full year results.
BOV also stated that on Friday 31 October 2008 it will be issuing its financial results for the year ending 30 September 2008.