Insider Business CCB deal set to change Hellenic and its future potential, CEO tells...

CCB deal set to change Hellenic and its future potential, CEO tells AGM

The agreement for the acquisition of certain assets and liabilities of the Cyprus Co-operative Bank (CCB) will completely change Hellenic Bank and its future potential,  the bank’s CEO Ioannis Matsis, told the 44th AGM  on Wednesday.

As he said, this transaction would turn the Hellenic Bank into a leading bank in retail and small and medium-sized businesses banking in Cyprus.

He also said that after the transaction,  Hellenic Bank would turn into a more robust bank with improved financial indicators, such as the levels of Non-Performing Exposures (NPEs), the cost-to-income ratio and expected profitability.

“A Bank that will justify the investment of its shareholders by giving them the appropriate returns and making them proud of their investment,” he added.

Noting that the final conclusion of the transaction depended on the approval of the shareholders and the competent supervisory authorities, Matsis said that the transaction would be the main topic at an upcoming EGM.

Referring to the issue of NPEs, he said that addressing the problem would be a key goal for the Bank in 2018.

He added that the amendments and the new legislation approved on Sunday by the House of Representatives were expected to significantly boost these efforts.

The CEO referred to the bank’s goal to improve risk management, and compliance, noting that the Bank’s main efforts would be to ensure that mistakes of the past would not be repeated and that, among other things, the quality of new loans would remain high. The risks related to money laundering and financing terrorism would be reduced, he noted.

Chairman of the Board of Directors of the Hellenic Bank Euripides Polykarpou spoke about a period full of challenges and major changes for the Bank, the wider banking sector and the Cypriot economy in general.

Referring to the Hellenic Bank’s agreement with CCB, he said this was a key agreement, the completion of which would benefit both tHellenic Bank and its strong position in the market, as well as the wider banking sector in Cyprus, by re-establishing a sense of security and maintaining its stability.

He expressed hope for a positive outcome of the process with the approval of the agreement.

The government of Cyprus approved a deal on the Cyprus Co-operative Bank, following the offer submitted by Hellenic Bank to buy out the bank.

According to the offer, Hellenic undertakes to pay the whole amount of the clients’ deposits worth €9.7 b and assumes assets of 10.3 billion euro, including loans, bonds and cash as well as non-performing loans of €0.5 b. Assets of the Co-operative amounting to €8.3 b will be taken over by the state, most of which is non-performing loans.

The Cyprus Co-operative Bank (CCB) is the second largest credit institution in Cyprus, as of February 2018, the Bank had assets with a book value around €12 b, it had deposits around €11 b and gross loans in the amount around €11 b. CCB has around 2,700 employees and a network comprising around 170 branches in Cyprus.

Read more

Top Stories

Minister of Agriculture presents the Strategy for Biodiversity of Cyprus

The Government has presented on Friday the Strategy for Biodiversity of Cyprus, which includes thirteen strategic goals for the decade 2020-2030. The Action Plan...

Government, social partners kick off talks on support measures

  The government, employers and trade unions on Friday launched discussions on a package to support employment post-June 12 when the current schemes end. Employer associations...

Significant funding opportunities for Cyprus in the post-COVID era under European Green Deal

Aiming at a climate-neutral European Union by 2050, the European Green Deal is becoming the main tool for the recovery of the economy in...

Two coronavirus cases on Friday, total at 960

  Two people have tested positive for coronavirus in Cyprus from a total of 1836 tests, the Health Ministry said on Friday. One was from repatriations...

BA owner considers legal challenge to UK quarantine as relations fray

    The owner of British Airways is considering a legal challenge to Britain's quarantine plan, as relations between airlines and the government are frayed by...


Poulles (Υoung kolokassi)

Either you thrash the coriander seeds in a mortar, without making them into dust, or you gradually crush them in a blender. Remove the edges...

Pork cooked in wine

Crush the coriander seeds in a pestle and mortar or pulse-blend in a blender, taking care not to over-grind. Put the meat in bowl (not...

Lefkaritikos tavas – O ‘protinos’

Wash and dry the meat and rice separately. In a ‘tava’ (oven proof deep clay pot) first put a layer of five-six pieces of meat...

Local cuisine: An introduction

Rich in fresh ingredients and tasty herbs, offers the very best of Mediterranean culinary delights. Head out to a tavern and feast on a...