Bank of Cyprus
Encyclopedia
Bank of Cyprus is a major Cypriot
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...

 financial institution. In terms of market capitalisation it is the country's second largest company.
As of December 31, 2005, the Group's Total Assets reached C£13,22bn (€23,00bn) and the Group's Shareholders' Funds were C£818mn (€1,42bn). At 30 September 2008, the Group's Total Assets reached €34,03 bn and the Group's Shareholders' Funds were €2,13 bn. The Bank of Cyprus Group employs 11.962 staff worldwide.

The Group currently operates through a total of 300 branches/business offices, of which 147 operate in Cyprus, 134 in Greece, four in the United Kingdom, ten in Australia (five in Victoria, four in New South Wales and one in South Australia), one in the Channel Islands, one in Moscow, and four in Romania (three in Bucharest
Bucharest
Bucharest is the capital municipality, cultural, industrial, and financial centre of Romania. It is the largest city in Romania, located in the southeast of the country, at , and lies on the banks of the Dâmbovița River....

 and one in Constanța
Constanta
Constanța is the oldest extant city in Romania, founded around 600 BC. The city is located in the Dobruja region of Romania, on the Black Sea coast. It is the capital of Constanța County and the largest city in the region....

). BoC aims to build its network in Moscow and St. Petersburg and plans to grow to 40 branches in Romania.

The shares of the Bank are listed on the Cyprus Stock Exchange
Cyprus Stock Exchange
The Cyprus Stock Exchange or CSE is a stock exchange located in Nicosia, Cyprus. It was established under the Cyprus Securities and Stock Exchange Law which provides for the development of the securities market in Cyprus and for the establishment and operation of the Cyprus Stock Exchange, and was...

 (CSE). The Bank is the largest listed company on the CSE in terms of market capitalization and is widely held. Since October 8, 2007 the Bank of Cyprus has been part of the Dow Jones Cyprus Titans 10 Index, which comprises the 10 largest companies in Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...

. The Bank of Cyprus is also listed on the Athens Stock Exchange
Athens Stock Exchange
The Athens Stock Exchange or ASE or ATHEX is a stock exchange located in Athens, Greece.-History:The Athens Stock Exchange started trading in 1876. The Athens Stock Exchange is a subsidiary of Hellenic Exchanges S.A., whose shares are listed in ATHEX...

 and has been part of the FTSE/Athex 20
FTSE/Athex 20
The FTSE/Athex 20 is the index of the twenty largest companies on the Athens Stock Exchange.-References:*...

 index from 9 October 2006.

The bank adopted as its emblem the ancient Cypriot coin bearing the inscription ΚΟΙΝΟΝ ΚΥΠΡΙΩ ("Common to all Cypriots").

History

  • 1899 On January 1, 1899, a group of progressive and visionary Cypriots led by Ioannis Economides, a significant figure in financial and social circles, founded the "Nicosia Savings Bank" or "Nicosia Depository" («Ταμιευτήριο η Λευκωσία») . This is the first Cypriot banking institution.
  • 1912 The "Nicosia Savings Bank" became a public company and changed its name to Bank of Cyprus (BoC), following an application by the shareholders of the Savings Bank to the High Commissioner in 1909.
  • 1908 The Cyprus Savings Bank (Kypriakon Tomieftiron), commences operations in Nicosia
    Nicosia
    Nicosia from , known locally as Lefkosia , is the capital and largest city in Cyprus, as well as its main business center. Nicosia is the only divided capital in the world, with the southern and the northern portions divided by a Green Line...

    .
  • 1930 The BoC incorporated as a limited company.
  • 1943 The BoC was reconstituted with the amalgamation with the Bank of Famagusta
    Famagusta
    Famagusta is a city on the east coast of Cyprus and is capital of the Famagusta District. It is located east of Nicosia, and possesses the deepest harbour of the island.-Name:...

     and the Bank of Larnaca
    Larnaca
    Larnaca, is the third largest city on the southern coast of Cyprus after Nicosia and Limassol. It has a population of 72,000 and is the island's second largest commercial port and an important tourist resort...

    .
  • 1944 The BoC acquired the Melissa Bank, Paphos
    Paphos
    Paphos , sometimes referred to as Pafos, is a coastal city in the southwest of Cyprus and the capital of Paphos District. In antiquity, two locations were called Paphos: Old Paphos and New Paphos. The currently inhabited city is New Paphos. It lies on the Mediterranean coast, about west of the...

    , (est. 1924). The Mortgage Bank of Cyprus is established.
  • 1945 BoC merged with the Cyprus Savings Bank.
  • 1953 BOC merged with Popular Bank of Paphos (Paphos Laiki Bank) (est. 1924).
  • 1955 BoC opened its first branch abroad to serve the Cypriot community in London.
  • 1960 BoC established Bank of Cyprus (London) Ltd.
  • 1974 The Turkish invasion of northern Cyprus results in the loss of a total of 15 branches, namely Xeros, Morphou and Zodhia (Nicosia District), Golden Sands, Kato Varosha, Kennedy Avenue, Democratias Avenue, Evagoras Avenue and Oceania (Famagusta Town), Yialousa, Rizokarpaso and Lysi (Famagusta District), and Kyrenia, Karavas and Lapithos branches (Kyrenia District) were lost during the Invasion.
  • 1982 BoC acquired Standard Chartered Bank
    Standard Chartered Bank
    Standard Chartered PLC is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries...

    's Cyprus operations. (The then Chartered Bank had bought the Ionian Bank
    Ionian Bank
    The Ionian Bank was a British overseas bank that investors established in 1839 to operate in the Ionian Isles, which was then a British Protectorate. The bank later expanded in Greece and the Eastern Mediterranean. After losing its branches in Egypt to nationalization, IB retreated from the...

    's Cyprus operations in 1957.) BoC also opened a representative office in Greece.
  • 1986 BoC opened a representative office in Australia.
  • 1991 BoC established its first branch in Greece. Kolonaki branch was located at the corner of Vasilissis Sophias Avenue and Sekeri Street, and also boasted a Business Banking Centre and the bank's treasury. In the summer of 2009, this and Mitropoleos Street branches were merged to form the new Syntagma Square branch, which retains branch code 001.
  • 1995 BoC opened a representative office in South Africa
    South Africa
    The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...

    , and a branch in Heraklion
    Heraklion
    Heraklion, or Heraclion is the largest city and the administrative capital of the island of Crete, Greece. It is the 4th largest city in Greece....

    , Crete
    Crete
    Crete is the largest and most populous of the Greek islands, the fifth largest island in the Mediterranean Sea, and one of the thirteen administrative regions of Greece. It forms a significant part of the economy and cultural heritage of Greece while retaining its own local cultural traits...

    .
  • 1996 BoC established Bank of Cyprus (Channel Islands) in Guernsey
    Guernsey
    Guernsey, officially the Bailiwick of Guernsey is a British Crown dependency in the English Channel off the coast of Normandy.The Bailiwick, as a governing entity, embraces not only all 10 parishes on the Island of Guernsey, but also the islands of Herm, Jethou, Burhou, and Lihou and their islet...

    , and a representative office in Toronto
    Toronto
    Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...

    , Canada, located in the heart of Greektown in Toronto
    Toronto
    Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...

     to serve mainly the Greek-Cypriot community.
  • A subsidiary company, Cyprus Leasing S.A., was established in Greece to deal with leasing activities. It is now the second largest of its kind in Greece. In Cyprus, leasing activities are carried out by a dedicated department of the BoC itself rather than a focused subsidiary.
  • 1998 BoC established representative offices in New York and Moscow, and then another in Bucharest
    Bucharest
    Bucharest is the capital municipality, cultural, industrial, and financial centre of Romania. It is the largest city in Romania, located in the southeast of the country, at , and lies on the banks of the Dâmbovița River....

    , Romania
    Romania
    Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...

    .
  • 2000 BoC established a subsidiary in Australia, the country with the world's largest Greek and Cypriot community. The community, which numbers around 600,000 people, is concentrated in Melbourne
    Melbourne
    Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...

     and Sydney
    Sydney
    Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...

    . BOC had long had a presence in the Australian market through its representative offices in Sydney, Melbourne, Adelaide
    Adelaide
    Adelaide is the capital city of South Australia and the fifth-largest city in Australia. Adelaide has an estimated population of more than 1.2 million...

     and Brisbane
    Brisbane
    Brisbane is the capital and most populous city in the Australian state of Queensland and the third most populous city in Australia. Brisbane's metropolitan area has a population of over 2 million, and the South East Queensland urban conurbation, centred around Brisbane, encompasses a population of...

    . BoC also opened a representative office in Bucharest
    Bucharest
    Bucharest is the capital municipality, cultural, industrial, and financial centre of Romania. It is the largest city in Romania, located in the southeast of the country, at , and lies on the banks of the Dâmbovița River....

    .
BoC bid for Interbank in New York for about $43 million. Interbank was 78% owned by Greek businessman Dimitris Kontominas, and the remaining equity was dispersed among three other shareholders. With four branches in New York, including the Astoria, Queens
Astoria, Queens
Astoria is a neighborhood in the northwestern corner of the borough of Queens in New York City. Located in Community Board 1, Astoria is bounded by the East River and is adjacent to three other Queens neighborhoods: Long Island City, Sunnyside , and Woodside...

 area where there is a strong Greek presence, the bank catered to the Greek American community. The U.S. Federal Reserve withheld its approval and bid expired.
  • 2004 BoC merged its UK branch with its subsidiary Bank of Cyprus (London)Ltd. The combined business is known as "Bank of Cyprus UK".
  • 2005 BoC opens its Pallini branch in eastern Athens, thereby reaching 100 branches in Greece.
  • 2007 On October 8, 2007, BoC announced that it had opened a branch in Moscow, making it the first Cypriot bank to have banking operations in Russia. In the same year, the opening of two new branches in Athens (Haidari and Spata), meant that the branches in Greece outnumbered those in Cyprus.
  • 2008 BoC purchased 80% of Uniastrum, the 9th largest bank in Russia, for US$576 million. Uniastrum Bank has over 220 branches throughout Russia and continues to operate under its own name, which however is linked with that of the Bank of Cyprus Group.
  • 2008 BoC acquired 97% of the share capital of AvtoZAZBank in Ukraine, which operated through 26 branches and 18 seasonal cash offices located in Ukraine's four main regions. The bank now trades under the Bank of Cyprus name.
  • 2010 The Bank of Cyprus decided to establish a banking unit in the Dubai International Financial Centre (DIFC), in the Emirate of Dubai, in the United Arab Emirates.
  • 2010 The Bank of Cyprus decided to establish a representative office in India. In Cyprus, Ayios Lazaros branch in Larnaca closed, due to the forthcoming demolition of the building housing it. Despite the harsh economic downturn in Greece, the network there continues to grow, with the opening of 20 branches throughout Greece, with 10 those to be located in Greater Athens, 5 in Salonica and 5 in other areas.

Cultural Foundation

The bank operates the "Bank of Cyprus Cultural Foundation", which it established in 1984. It claims its purpose is to "assist in the rescue of the island's cultural heritage, which has been pillaged or stolen by the Turkish forces from the occupied areas, and to promote the Hellenic culture of Cyprus at a professional and scholarly level". It has various collections of Cypriot artifacts, such as ancient coins, old maps of the island, art pertaining to the island and "rare documents".

Awards

In 2008 the Bank of Cyprus was a recipient of a Ruban d'Honneur for Growth Strategy of the Year Award, one of the European Business Award
The European Business Awards
-About the Awards:The European Business Awards is a European awards programme started in 2006. The European Business Awards sponsored by HSBC is an independent Awards programme designed to recognise and promote excellence, best practice and innovation in the European business community...

s.

Recent history

In recent years the Bank in the UK has developed into a more focused business bank, supporting its lending with a range of savings products. As part of this strategy the bank has invested in its telephone and online banking services and closed a number of its retail branches, whilst opening dedicated business offices. Current locations are as follows:
  • Central London (Charlotte Street) – corporate and high net worth banking for UK and overseas customers
  • North London (Southgate) – business banking, along with customer service, counter service and administrative support
  • Birmingham (Sutton Coldfield) – business banking
  • South London (Croydon) – business banking


Business banking customers can also access branch counter services through the Bank's relationship with the Lloyds Banking Group network, whilst all personal and business customers can service the majority of their routine banking needs through postal, telephone and online banking services.

Oncology Center

The Bank also operates, in concert with the Republic of Cyprus, the BOC Oncology
Oncology
Oncology is a branch of medicine that deals with cancer...

 Center. The agreement provided for the bank's giving the money to build the center on land given by the government and the appropriation of the operating budget by the government.

Controversy

The head of Banca Transilvania
Banca Transilvania
Banca Transilvania , a bank corporation in Romania, was founded December 1993 in Cluj-Napoca by several local businessmen, with an initial capitalization of 2 billion Romanian lei ; initial capitalization was 79% Romanian and 21% foreign.The bank first opened for business February 16, 1994, with...

's administration council, Horia Ciorcila and the head of Bank of Cyprus (Romania), Georgios Christofourou have been summoned to trial on alleged stock market manipulation and money laundering in the Bank of Cyprus (Romania) acquisition of a share package in Banca Transilvania end of last year. DIICOT, the direction which investigates organized crime and terrorism, have also sent to trial a former vicepresident of the administration council or Banca Transilvania, Claudiu Silaghi, and Bank of Cyprus employees, Anastasios Isaakidis, along with four other private individuals. Bank of Cyprus (Romania) has issued a statement and denies any wrongdoing.

Bank of Cyprus (Romania) announced in mid December 2009 it purchased 9.7068 per cent of the TLV (Transilvania Bank) shares for EUR 58 M, and in May 2010 expressed interest in taking over 20 per cent of the bank's stock.

External links

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