Bank of Cyprus
Bank of Cyprus’s resilience along with a significant expansion in the key market of Greece amid 2002’s adverse economic conditions have earned it the award again this year.
In a year when the main island banks posted deep losses, Bank of Cyprus had the smallest loss of the bunch. This was in part due to its ability to offer high quality services while cutting costs and enhancing revenues.
The bank was able to bolster its bottom line thanks to a strong performance from its Greek subsidiary, which increased operating profit by 33.5%. In that crucial market, the unit expanded the number of retail branches from 60 to 75, making it the biggest foreign bank in Greece. In Cyprus, the bank already dominates the retail market with a 42% share. Further growth came from the Australian market, which the Bank of Cyprus has recently entered to provide banking services to the 600,000 Greeks and Cypriots living there.
The bank’s more noteworthy service improvements included a co-operation agreement with US credit card company American Express, giving it the right to issue American Express cards. The number of subscribers to Bank of Cyprus’ popular internet banking service rose 130% in 2002.
Chairman Solon Triantafyllides, said: “Bank of Cyprus has adopted measures to improve profitability through a concerted effort to: increase net interest margins, manage arrears and non-performing accounts, and contain operating expenses. The group’s operation in Greece generates 34% of core profits. The bank has a market share of 3% and ranks as the largest foreign bank operating in Greece. It has an established presence in the UK and also operates in Australia.
“Cyprus’s accession to the EU in 2004 is expected to enhance the group’s prospects for further success.”
