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Bank of Cyprus To Sell Australia Ops - Report

Bank of Cyprus is to sell its Australian operations to Bendigo and Adelaide Bank, says a report on 7News via ABC.

The deal is expected to be finalised by February 2012, and would see the BoC's 14 branches and assets worth 1.4 billion AUD transferred to new hands.

The deal has to be approved by each bank's board and regulators, says the report.

The news follows the announcement of Bank of Cyprus's loss of 802.87 million euros for the first nine months of 2011, compared to a profit of 243.98 million in the same period last year.

The losses were due to its write-down of Greek bonds, classified as an impairment of 1.048 billion euros.

Net interest income was 854.47 million, compared to 767.556 million in the first nine months of 2010, said Bank of Cyprus.

The group said it would strengthen its capital base through a rights offering to raise up to 396 million euros in light of the latest developments in the Eurozone and the potential impact from Greek government bonds.

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