Bank of Cyprus 2020 Outlook and Beyond

As we dive into the 2020 outlook and beyond for Bank of Cyprus, it's essential to understand the bank's current situation. The bank's net interest income was €346.9 million in 2019.

In 2020, Bank of Cyprus aims to reduce its non-performing exposures (NPEs) to 10.5% of its loan book. This is a significant goal, considering the bank's NPEs stood at 14.4% in 2019.

The bank's strategy is focused on improving its asset quality, which will contribute to its overall financial stability. By reducing its NPEs, Bank of Cyprus can free up capital to invest in more profitable areas.

The bank's management is optimistic about its future prospects, citing the improvement in the Cyprus economy as a key driver of growth.

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Bank of Cyprus has faced its fair share of challenges and controversy over the years.

In 2009, the bank's Romanian office was involved in a stock market manipulation scandal, with the head of Banca Transilvania's administration council and the head of Bank of Cyprus Romania charged with wrongdoing.

The case dragged on for years, with the Romanian High Court of Justice ultimately rejecting DIICOT's appeal in 2014, confirming the acquittal of all defendants.

The bank has also been through a major restructuring, selling off non-core assets and increasing its capital by 1 billion euros in 2014.

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The 2020s were a tumultuous time for the Bank of Cyprus. Viktor Vekselberg, the largest shareholder, was sanctioned by the US, UK, and EU in 2022, adding to his existing US sanctions.

This was not the only challenge the bank faced. In 2023, a small group of eight shareholders controlled a significant 50.38% of the bank's shares, with a total of 446.2 million shares.

The bank's presence in Russia was also a point of contention. In January 2024, it closed its representative offices in Moscow and St. Petersburg, effectively leaving the country.

In 2009, Bank of Cyprus' Romanian office was involved in a controversy surrounding the purchase of 9.7% of Banca Transilvania's shares for 58 million euros.

The Romanian body that investigates organized crime and terrorism, DIICOT, charged several individuals with stock market manipulation and money laundering in this transaction, including the head of Banca Transilvania's administration council, Horia Ciorcila, and the head of Bank of Cyprus Romania, Georgios Christoforou.

Bank of Cyprus Romania denied any wrongdoing, but DIICOT pressed on with the charges. The Bucharest Tribunal acquitted Ciorcila and Christoforou in 2011, and the acquittal was upheld by the Bucharest Court of Appeal in 2012 and the Romanian High Court of Justice in 2014.

As a result of the controversy, Bank of Cyprus sold off its stake in Banca Transilvania in 2014.

Deposit tax and bailout/bailin were imposed on Cyprus to help fund an International Monetary Fund and euro zone bailout. The decision was made by EU finance ministers.

In a drastic measure, depositors in Cyprus were forced to take a loss, a process known as bailin. This meant that 47.5% of uninsured depositors, with amounts above 100,000 Euro, contributed to the bank's recapitalization.

The bailin converted €3.8 billion or around 25% of deposits to capital. This had a significant impact on the bank, with the bank receiving around 20,000 new shareholders.

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The Bank of Cyprus has a strong management team in place, led by Panicos Nicolaou as CEO since August 31, 2019. He is responsible for overseeing the bank's overall strategy and direction.

Eliza Livadiotou serves as the Director of Finance/CFO, a role she has held since March 31, 2016. At 51 years old, she brings a wealth of experience to her position.

George Kousis is the Chief Tech/Sci/R&D Officer, a position he has held since December 31, 2021. His expertise in technology and innovation is crucial to the bank's growth and development.

The bank's Board of Directors is composed of experienced professionals, including Eliza Livadiotou, who is also a Director/Board Member since May 19, 2022. Lyn Mary Grobler and Takis Arapoglou are also part of the Board, bringing their expertise and knowledge to the table.

Here is a list of the bank's top management team:

The Bank of Cyprus has a diverse team of managers and directors who oversee the company's operations.

The Chief Executive Officer is Panicos Nicolaou, who has been in the role since August 31, 2019.

Eliza Livadiotou is the Director of Finance and has held this position since March 31, 2016. She is also a Director on the Board, having joined on May 19, 2022.

George Kousis is the Chief Technology and Science Officer, appointed as of December 31, 2021.

The Board of Directors consists of three members: Eliza Livadiotou, Lyn Mary Grobler, and Takis Arapoglou.

Here is a brief overview of the directors:

In an interview with the bank's CEO, he emphasized the importance of innovation in the banking sector, stating that Bank of Cyprus aims to be at the forefront of digital transformation.

The bank has been working hard to improve its online services, with a significant increase in mobile banking users over the past year.

Bank of Cyprus has a strong commitment to corporate social responsibility, with a focus on supporting local communities and promoting financial literacy.

The bank's CEO mentioned that they have implemented various initiatives to promote financial inclusion, such as partnerships with local organizations to provide financial education to underprivileged groups.

Bank of Cyprus has a wide range of products and services, including personal and corporate banking, as well as investment and wealth management services.

The bank's CEO highlighted the importance of customer satisfaction, stating that they have implemented various measures to improve customer experience, including extended operating hours and improved customer support channels.

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The Bank of Cyprus has a significant presence in Cyprus, operating 58 branches across the Republic.

It's worth noting that 3 of these branches are cash offices, which don't offer loans.

The bank has a strong market penetration, with 83% of Cypriots having active Bank of Cyprus accounts.

This represents a significant share of the overall banking sector, with 40% of all corporate accounts and 60% of total corporate accounts held with the bank.

The bank's shares are listed on the Cyprus Stock Exchange (CSE), making it the largest listed company on the CSE in terms of market capitalization.

Since 2007, the Bank of Cyprus has been part of the Cyprus 10 Index, which comprises the 10 largest companies in Cyprus.

It was also listed on the Athens Exchange from 2000 to 2017 and the London Stock Exchange in January 2017.

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