According to Eurobank Holdings’ latest financial results, the bank recorded a €99 million contribution to its net profits from acquiring an additional stake in Hellenic Bank during the second half of 2024.
Following the mandatory public offer in early 2025, Eurobank will proceed with a squeeze-out to acquire the remaining 6.5 per cent stake in Hellenic Bank, aiming for full ownership.
The delisting of Hellenic Bank is expected within the second quarter of 2025, pending regulatory approvals.
The reform, which the organisation describes as an “essential step in modernising and boosting the competitiveness of the country’s tax system”, is expected to foster a more “favourable, stable, and predictable business environment”.
“This, in turn, will make Cyprus an even more appealing investment destination,” the agency said.
The proposed changes introduce significant advantages to attract and retain both foreign and existing investors.
It should be noted that Karakyr Properties was already the active tenant of the building.
According to the company, the board of directors had long considered Annexes 3 and 4, located next to the Mall of Cyprus, as non-core assets. These annexes are primarily occupied by office and exhibition space tenants, while the mall itself focuses on retail.
Annex 3, an office building with a gross leasable area (GLA) of 2,330 square metres, generated a net operating income (NOI) of €383,500 for the financial year 2024.
The bank’s three-year plan aims for a 15 per cent return on tangible equity and a cumulative profit distribution twice that of the 2022-2024 period.
According to preliminary results, 2024 was a year of strong performance for Eurobank, exceeding expectations.
Net interest income increased by 15.3 per cent year-on-year (or 1.8 per cent excluding Hellenic Bank), reaching €2.50 billion.
This growth was primarily driven by lending, bond investments, and international activities.
Alpha Bank has announced a binding agreement to acquire the total assets and liabilities of AstroBank Public Company Ltd for €205 million, a move strengthening its presence in the Cypriot market.
The transaction will be executed through Alpha Bank Cyprus Ltd, a subsidiary of Alpha Holdings.
The acquisition is expected to be a key factor in enhancing Alpha Bank Group’s profitability, with the integrated operations projected to contribute over €100 million annually in recurring net profits.
Alpha Bank said the deal is expected to generate a 5 per cent increase in Earnings Per Share (EPS), a 60-basis-point improvement in Return on Tangible Equity (RoTE), and a 40 per cent return on regulatory capital.
Speaking at the recently held Capital Link Cyprus Shipping Forum in Limassol, Orphanidou detailed AI’s transition from a futuristic technology to an essential tool, accelerating business processes and revolutionising industries.
This shift, she explained, is creating new opportunities and introducing significant challenges for organisations.
Orphanidou started with a striking fact, citing Gartner, that “AI has already created $4.7 trillion in value in the global business market by 2024”.
In the maritime sector, Orphanidou emphasised how AI is instrumental in adopting new technologies that enhance operational efficiency and safety.
Cyprus’ banking sector is undergoing significant changes, with recent mergers reshaping the financial landscape. At the same time, Cypriots are paying the highest mortgage rates in the eurozone while receiving some of the lowest interest rates on their deposits.
“The banking system operates close to an oligopoly, limiting competitive pressure,” said Central Bank of Cyprus (CBC) governor Christodoulos Patsalides, highlighting the limited competition within the sector.
These concerns arise as the sector consolidates further, with the announced merger between Hellenic Bank and Eurobank and Alpha Bank’s acquisition of AstroBank.
Patsalides confirmed that the high liquidity of Cypriot banks, combined with reduced competition, enables them to maintain low deposit rates while benefiting from placing funds with the European Central Bank (ECB).
“About half of bank profitability comes from depositing Cypriot savings in European banks at higher rates,” he acknowledged.
The fund aims to stimulate investment in the regional market and enhance its global competitiveness, Vice-President of the European Investment Bank (EIB) Kyriakos Kakouris said at its official launch.
Permanent secretary of the finance finistry, Andreas Zachariades, underscored the importance of the fund, acknowledging the startup sector as a particularly challenging business landscape.
He pointed out that due to the “high-risk nature of their activity,” startups in Cyprus continue to struggle with accessing financing. Emphasising the need to “support where the market fails,” he highlighted the importance of a funding environment that offers financial support tailored to each startup’s development stage.
“We want to invest in people with an obsession”, 33East co-founder Yiannis Eftychiou stated, underlining the firm’s founder-driven investment approach rather than a market-driven one.
Hellenic Bank is expected to finalise its acquisition of CNP Cyprus Insurance Holdings Limited by the first quarter of 2025.
The deal, valued at €182 million, is still pending regulatory approvals, according to preliminary results released by the bank.
On November 28, 2024, the bank confirmed that the Cyprus Competition Commission had approved the transaction in a session held on November 27, 2024.
The exclusive negotiations for the acquisition began on April 24, 2024, when Hellenic Bank entered into a sale agreement with CNP Assurances.
The agreement includes a right of sale at a specified price, obligating the bank to proceed with the acquisition of CNP Cyprus Insurance Holdings if this right is exercised.
Following consultations with the European Works Council, both parties signed the Sale and Purchase Agreement on July 9, 2024.
During a presentation of the EIB’s 2024 financial results, vice-president Kyriakos Kakouris announced a key investment of €72 million for Cyprus’ new archaeological museum, highlighting the bank’s commitment to the island’s cultural and socio-economic growth.
During the annual financial results presentation, Finance Minister Makis Keravnos noted that the EIB group achieved a new high with €89 billion in new lending for the year.
This capital has mobilised over €100 billion for various projects, significantly bolstering the EU’s energy security through enhancements and expansions in networks, renewable energy sources, and zero-emission industries.
Kerynos said, “These figures are practical proof that the group has not only met but exceeded its targets on several key EU priorities and is rightly given the title of ‘Bank of Europe.’”
The figures, included in the February 2025 Monetary and Financial Statistics report, provide insights into the country’s banking activity.
Despite the overall decline, the annual growth rate of total deposits reached 6.9 per cent in January, slightly up from 6.6 per cent in December. At the end of the month, total deposit balances stood at €55.7 billion.
Ask Wire, which specialises in real estate data and analytics, is contributing to the development of a Banking-as-a-Service (BaaS) platform that integrates property listings, mortgage financing, and additional homeowner services.
Attica Bank announced the platform in early February 2025, aiming to simplify real estate transactions by offering homebuyers access to various financial and market services.
“Designed to simplify real estate transactions, it offers homebuyers access to property listings, mortgage financing, market analytics, and additional services such as discounted energy supply and technical support—all in one place,” the bank stated.
Despite the overall decline, notable increases were recorded in asphalt sales, which surged by 52.4 per cent, while liquefied petroleum gases rose by 6.9 per cent.
Motor gasoline sales were also up, climbing by 4.0 per cent, alongside heating gasoil and road diesel, which increased by 2.3 per cent and 1.9 per cent, respectively.
Conversely, marine gasoil supplies declined by 7.0 per cent, while aviation kerosene fell by 5.8 per cent.
Among the sectors showing notable growth, the collection, processing, and supply of water saw the largest rise at 23 per cent.
Other sectors that performed well included the manufacture of electronic and optical products and electrical equipment (12.9 per cent) and machinery and equipment manufacturing, motor vehicles, and transport equipment (10.4 per cent).
Additionally, material recovery (8 per cent) and mining and quarrying (7.5 per cent) also saw significant growth.
On the downside, there were declines in several sectors compared to the previous year.
The Cyprus Stock Exchange (CSE) ended Friday, February 28, without showing any notable change.
The general Cyprus Stock Market Index stood at 227.46 points at 13:07, reflecting no fluctuation from the day before.
The FTSE / CySE 20 Index was at 138.01 points, also showing no change.
The total value of transactions came up to €162,714, until the aforementioned time during trading.
In terms of the sub-indexes, the main index rose by 0.07 per cent, while the alternative and investment firm indexes fell by 0.19 per cent and 0.28 per cent respectively. The hotel index remained stable.
The biggest investment interest was attracted by the Bank of Cyprus (no change), Agros Development Company (no change), Hellenic Bank (no change), Demetra (-0.31 per cent), and Vassiliko Cement Works Public Company (-1.06 per cent).
