• Bank of Cyprus turns a new page with its listing on the Athens Stock Exchange.

• Hellenic Bank comes under the control of Eurobank S.A. and is being redesigned.

The financial sector of Cyprus is once again entering a new era starting next month. The developments concern the two major systemic banks, Bank of Cyprus, which is celebrating 150 years of operation this year, and Hellenic Bank, which is entering a new era as it comes under the control of Eurobank S.A., which now holds 56% of its shares.

Two significant developments are set to take place from the middle of next month, shaping the new course for the two systemic banks of Cyprus.

At Bank of Cyprus, developments are focused on Athens, specifically on the listing of its shares on the Athens Stock Exchange. During an extraordinary general meeting on September 13, 2024, and assuming the approval of the Athens Stock Exchange Admissions Committee, the shareholders will decide on the listing of the bank’s shares on the Athens Stock Exchange, scheduled for September 23, 2024.

With this move, the bank’s recognition and reputation are expected to be enhanced, while at the same time, it continues to strengthen its strategy focused on:

1. Increasing revenues through optimal capital management by generating income from higher quality new lending, diversifying into banking and financial activities with lower capital requirements, and prudent liquidity management.

2. Implementing an efficient operational model with a continuous focus on efficiency through automation supported by digital transformation.

3. Maintaining a strong quality loan portfolio through the preservation of high-quality new lending via strict practices, reducing loan loss provisions to normal levels, and minimizing other impairments.

4. Enhancing organizational resilience and policies related to Environmental, Social, and Governance (ESG) issues.

At Hellenic Bank, changes are happening rapidly, with the main event being the 50th Annual General Meeting of shareholders, scheduled for Wednesday, September 18, 2024, at 11:00 a.m. in Nicosia.

During the meeting, decisions will be made regarding the individuals who will represent the new Board of Directors and the leadership structure. It is almost certain that Mr. Michalis Louis, CEO of Eurobank Cyprus, will be appointed as the Chief Executive Officer. Mr. Louis has been the CEO of Eurobank Cyprus since 2007 and has been a member of the Executive Board of the Group, as well as a member or chair of various subsidiaries’ boards within the Group in Cyprus.

Mr. Antonis Rouvvas, the acting CEO of the Hellenic Bank Group and a long-time financial director, is expected to be appointed as the Group’s Chief Financial Officer.

During the general meeting, the re-election of Mr. Stephen John Albutt (independent non-executive director) is expected, along with the re-election of the following individuals to the Board of Directors: Mr. Michalis Louis (executive director), Mr. Oliver Bernard Ellingham (independent non-executive director), Mr. Robert Anastassis Kyprianou (independent non-executive director), Mr. Charalambos Constantinou (independent non-executive director), Ms. Maria Charalambous (independent non-executive director), Mr. Sofronis Clerides (independent non-executive director), and Mr. Kenneth Howard Prince-Wright (independent non-executive director).

According to reliable sources, Eurobank is ready to implement its business plan as the major shareholder of the Group and to submit a new public offer to acquire the remaining percentage in early 2025.

Until then, Hellenic Bank and Eurobank Cyprus will operate in parallel and independently, with the main goal of unifying as Eurobank increases its stake in the Hellenic Bank Group. Eurobank has clearly stated that it aims to use Cyprus as a springboard for expanding into Asia and the Middle East, considering that Cyprus’ location can help companies establish themselves on the island and grow in Europe.

The CEO of Eurobank S.A., Fokion Karavias, stated back in February that “the Group plans to open offices in Mumbai, Dubai, Jeddah, and Tel Aviv, with the goal of deriving 40% of its profitability from its international network.”

Moreover, Stavros Ioannou, Deputy CEO of Eurobank, clarified in other statements: “To be successful, we need to increase our footprint. This can only be achieved by expanding the markets in which we operate.”

It should be noted that, besides the two systemic banks, other banks operating in Cyprus include Ancoria Bank Limited, with its main shareholder Sievert Larsson (67.944%), Astrobank Public Company Limited, with its main shareholder Holding M. Sehnaoui S.A.L (20.902%) and others (62.079%), the Cyprus Development Bank Public Company Limited, and the Housing Finance Corporation, as well as subsidiaries of foreign credit institutions from EU member states such as Alpha Bank Cyprus Ltd, National Bank of Greece (Cyprus) Ltd, and Eurobank Cyprus Ltd, along with others from third countries.