Following the announcement of Bank of Cyprus Australia’s acquisition by Bendigo and Adelaide Bank for $130 million in December, on February 29 the deal will be sealed. On March 1, Bank of Cyprus Australia will be a wholly-owned subsidiary of Bendigo and Adelaide Bank Limited and operate as a stand-alone entity.
On the eve of the acquisition, Managing Director Mr George Tacticos spoke to Neos Kosmos about the historic transition, set against the backdrop of difficulties faced by the banking system in Europe.
“The troubles faced by both Greece and Cyprus are being felt in our communities right here in Australia. Our hearts go out to our families, friends and communities being impacted by the crisis currently sweeping over Europe,” said Mr Tactictos.
“The sale of Bank of Cyprus Australia to Bendigo and Adelaide Bank is, to a certain extent, a by-product of the difficulties being experienced. We actively sought this sale to protect the needs of our customers and people to ensure the ongoing success of the bank.
“Bank of Cyprus Australia is a successful niche bank. People across the industry and community recognise that Bank of Cyprus Australia has cemented its place in the Australian banking landscape and Hellenic community.”
In describing the transition process of the acquisition, Mr Tacticos said that it was business as usual for all BOCA’s 14 branches.
“This is a great opportunity for both banks. There is the possibility of an expanded product range for us with the support and strength of a large Australian parent. The transition is minimal – we have always been an Australian bank and now we report to an Australian parent.” The Managing Director described the reaction of customers to the deal as positive.
“Operating as a subsidiary of Bendigo and Adelaide Bank will give us the opportunity to continue serving our customers and building on our customer base across the Hellenic community. This approach has been well received across all sectors – both corporate and retail.”
With BOCA celebrating 20 years in Australia, and 11 of those years as a fully operational bank, Mr Tacticos is confident that the next chapter of the BOCA story will be a continuing story of development.
“We have always been on a path of growth and this will be reflected in our strong 2011 results announcements due very soon,” said Mr Tactictos. “We believe the next chapter of BOCA will enable these results to be further accelerated to a significantly broader level.
“There is recognition and view out there that Bank of Cyprus Australia is a sustainable and profitable business. This is something we are very proud of. The growth phase of Bank of Cyprus Australia is in its infancy. We have a strong future and will continue to deliver results and increase our service representation across the Hellenic community.”
Asked if a possible name change for BOCA was on the cards, BOCA’s chief said: “We have the licence on Bank of Cyprus Australia name and logo until the end of February 2013. We will address what this means for the bank over the next few months.”
In regard to future staff levels at BOCA, Mr Tacticos says he’s optimistic. “At the bank it is business as usual – we are operating as a stand-alone entity. Given the future growth we envisage opportunities remain for our staff to grow and develop our business.”
Meanwhile the Bank of Cyprus Group (BoC), Cyprus’s biggest lender, recently posted a 1.01 billion euros ($1.26bn) net loss for 2011 after taking provisions for a Greek sovereign debt swap. BoC said the total impact of its participation in a voluntary swap of Greek government bonds with a 60 per cent impairment, amounted to 1.3 billion euros ($1.62bn) for 2011.
The nominal value of the Greek government bonds held by the group – after the writedown totalled 975 million euros ($1,215m) at the end of December 2011. Excluding the impairment, the group’s net profit for the period reached 312 million euros ($388m), an annual increase of 2.0 per cent.
