Bank of Cyprus buys up Ukrainian bank

BANK of Cyprus Public Company Ltd has signed a sale and purchase agreement for the acquisition of 95 per cent of the share capital of the Ukrainian bank AvtoZAZBank for €52 million.

According to a Bank of Cyprus announcement, AvtoZAZBank was established in 1991 and offers full banking services. The Bank’s head office is located in Kiev and it operates through a network consisting of 26 branches and 18 seasonal cash offices located in four main regions of Ukraine. The bank employs 365 people.

According to its un-audited financial statements at October 31, 2007, the net assets of the bank amounted to €15 million, total loans amounted to €85 million, and total deposits to €82 million.

The buyout is part of the Bank of Cyprus’ strategic plan to expand to countries with significant economic growth potential, large population, relatively low banking penetration and a high degree of recognition for Bank of Cyprus.

Ukraine has a buoyant economy with a real GDP growth of 7.1 per cent in 2006 and total loans increasing annually by more than 70 per cent, Bank of Cyprus said The low loans to GDP ratio of 54 per cent combined with the high GDP growth rate indicate the significant growth prospects of the banking sector, it added.

Bank of Cyprus will provide full banking services in Ukraine, also leveraging on its significant number of established relationships with businesses operating in this country.

The agreement is subject to the relevant approvals being obtained from the supervisory authorities in Cyprus and Ukraine.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.