Astrobank is reportedly in advanced discussions to acquire CDB Bank, marking a significant development in Cyprus' banking landscape.

Insiders have confirmed that the two financial institutions are engaged in negotiations, with Astrobank already having tabled a formal offer to CDB Bank. While representatives from both banks have declined to comment due to the sensitive nature of the negotiations, the potential merger is seen as a strategic move for Astrobank to solidify its position in the market.

CDB Bank's impressive 2022 performance showcased total assets worth €0.55 billion, making up approximately 21% of Astrobank's robust portfolio of €2.73 billion. CDB's financial health is further underscored by its total gross loans, which amounted to €250 million, and deposits that stood at an impressive €487 million. Moreover, the bank's deposits with the Central Bank reached €220 million.

An important metric in the banking world, the non-performing loan ratio, stood at 26.2% for CDB Bank by the end of 2022. In comparison, Astrobank recorded a healthier 19.5% for the same period.

On the employment front, CDB Bank boasted a strong workforce of 138 personnel and maintained its central offices in Nicosia. The bank also operated two branches in Nicosia and an additional branch in Limassol. Astrobank, a more expansive entity, employed 465 individuals and had an extensive network of 14 branches and business centers sprinkled throughout Cyprus.

Notably, Astrobank is no stranger to acquisitions. Its origins trace back to 2016 when Holing M Sehnaoui procured the subsidiary of Piraeus Bank in Cyprus. This was followed by the acquisition of USB Bank and, more recently, in 2021, the operations of the Byblos Bank branch in Cyprus. It's worth noting that CDB Bank's legacy is rooted in its history as the former state Development Bank, from which the state completely divested in 2008.