Bank of Cyprus sold

Bank of Cyprus Australia (BOCA) has been acquired by the Bendigo and Adelaide Bank for an estimated $130 million dollars.

Bank of Cyprus Australia was the largest Hellenic bank left in Australia with its 14 branches having interest bearing assets of $1.4 billion.

According to a written statement from BOCA to Neos Kosmos, the deal "was actively sought by Bank of Cyprus Australia executive management in order to secure the future of the only Hellenic bank in Australia".

The sale was deemed necessary given the current challenging economic conditions in Europe which were to impede the capacity of BOCA to take advantage of growth opportunities in the Australian market.

George Taktikos, Managing Director of BOCA, expressed his satisfaction about the deal. "This acquisition adds reassurance to our customers and people. We have always been an Australian bank and now we have an Australian parent. We can now continue providing competitive products and solutions to Australians and the Hellenic community alike. We can continue on our path of growth and strong community presence" said Taktikos.

Bendigo's Managing Director Mike Hirst, described BOCA as "an attractive business with a strong capital and liquidity position".

Bendigo has also announced it will raise $120 million of new capital through the sale of new shares, part of which will fund the acquisition.

Mr Hirst said he was confident of improving BOCA's earnings through funding and operational synergies.

"Bank of Cyprus Australia is predominantly funded by retail deposits, maintains a conservative risk profile with 99 per cent of the loan book secured against property, and has an excellent credit history," said Mr Hirst yesterday.

Bendigo and Adelaide Bank Chairman, Robert Johanson, said the purchase of BOCA provided a strategically complementary addition to the broader Bendigo network.

"The business aligns closely with [our] cultural and strategic values and its performance is a reflection of high customer advocacy and an excellent track record of direct community engagement."

In 2010 another Hellenic Bank, Laiki Bank Australia merged with Beirut Bank becoming the Beirut Hellenic bank of Australia.