Bank of Cyprus Presentation - May 2012
-
Upload
anonymous-jj6eerl -
Category
Documents
-
view
220 -
download
0
Transcript of Bank of Cyprus Presentation - May 2012
-
7/29/2019 Bank of Cyprus Presentation - May 2012
1/33
1
International Banking Services
May 2012
Bank of Cyprus Group
Strategic Business CrossroadA reliable Financial Centre
-
7/29/2019 Bank of Cyprus Presentation - May 2012
2/33
2
Bank of CyprusGroup
Bank of Cyprus
-
7/29/2019 Bank of Cyprus Presentation - May 2012
3/33
3
Table of Contents
I. Why Cyprus?
II. The Banking System in Cyprus
III. Cyprus Banking Regulatory Environment
IV. Bank of Cyprus Group
V. BOC International Banking Services
The Banking System in Cyprus
Cyprus Banking Regulatory Environment
Bank of Cyprus Group
BOC - International Banking Services
Why Cyprus?
-
7/29/2019 Bank of Cyprus Presentation - May 2012
4/33
4
Why Cyprus?
Why Cyprus?
The Banking System in Cyprus
Cyprus Banking Regulatory Environment
Bank of Cyprus Group
BOC - International Banking Services
Why Cyprus?
-
7/29/2019 Bank of Cyprus Presentation - May 2012
5/33
5
Reputable International Financial Centre -1
Strategic location at the crossroads of Europe, Asia and
Africa, with very convenient time zone
Member of the European Union (2004) and the EuropeanMonetary Union (2008)
Economic, legal and institutional stability
An attractive tax system, with the lowest corporate tax rate
in the EU at 10% and a wide network of Double Tax Treaties
A well-established legal system based on English standards
-
7/29/2019 Bank of Cyprus Presentation - May 2012
6/33
6
Reputable International Financial Centre - 2
High quality of legal, accounting and other professional
services
Business friendly legislation and government policies
A highly educated and low-cost employee work force
A well developed banking system, operating under a prudentregulatory and supervisory regime
Cyprus is on the white list of the OECD
About 256 thousand companies registered as at 29 February2012
-
7/29/2019 Bank of Cyprus Presentation - May 2012
7/337
Cyprus Economy Gradually regaining its positivemomentum
A services-oriented economybenefiting from its growingimportance as an internationalbusiness and financial centre
The economy is going through ashallow recession and is expected toreturn to growth in 2013
Government Debt % GDP at around
72%; significantly lower thanEuropean comparative
64,7 58,848,9
58,5 61,571,6
68,5 66,3 70,1
79,8 85,387,0
2006 2007 2008 2009 2010 2011
Government debt (% of GDP)
Cyprus Euro Area
Source: Eurostat, European Economic Forecast
1,1
0,5
-1,0
1,0
Cyprus
Real GDP (% growth)
2010 2011 2012f 2013f
-
7/29/2019 Bank of Cyprus Presentation - May 2012
8/338
Prospect of Natural Gas
Source: Noble energy presentation
Energy potential with Gas findings in EastMediterranean
Aphrodite gas field is an offshore natural gas fieldlocated 34km west of Israels Leviathan gas field,
one of the largest natural gas finds over the lastdecade
Aphrodite is one of 13 gas fields within Cyprus
demarcated maritime Exclusive Economic Zone(EEZ)
Initial evaluation work estimated gross resourcerange of 5 to 8 trillion cubic feet (Tcf) with a grossmean of 7 Tcf
Development alternatives construction of
liquefaction plant or pipeline
-
7/29/2019 Bank of Cyprus Presentation - May 2012
9/339
Foreign Direct Investments out of Cyprus
FDI into YearVolume
(mn)% Total Rank
Russia 2010 $12.276 29% 1st
Ukraine 2011 $9.915 22,2% 1st
Czech Republic 2010 691 13,5% 4th
India04 /2010 -03 /2011
913 4,7% 6th
Romania 2010 121 4,5% 7th
-
7/29/2019 Bank of Cyprus Presentation - May 2012
10/3310
The Banking Systemin Cyprus
Banking in Cyprus
The Banking System in Cyprus
Cyprus Banking Regulatory Environment
Bank of Cyprus Group
BOC - International Banking Services
Why Cyprus?
-
7/29/2019 Bank of Cyprus Presentation - May 2012
11/3311
Structure and Growth of Cyprus Financial System
Source: Cyprus Registrar of Companies, Central Bank
Size and structure of the Cyprus
financial system reflects Cyprus
role as an international business
centre
This is reflected in the growing
number of companies registered
in Cyprus and the increasing size
of the banking system
30
40
50
6070
80
2005-11
2006-04
2006-09
2007-02
2007-07
2007-12
2008-05
2008-10
2009-03
2009-08
2010-01
2010-06
2010-11
2011-04
2011-09
2012-02
Total Banking System Deposits ( bn)
Mar-2012: 70,7 bn
-
7/29/2019 Bank of Cyprus Presentation - May 2012
12/3312
Cyprus Banking System Balanced Expansion
Cypriot banks follow a traditional conservative,plain-vanilla commercial banking model
Low high-risk/volatile activities such asinvestment banking and proprietary trading
Income from trading activities is low,suggesting a high level of recurring incomefrom financial intermediation between saversand borrowers
Model based on long-term customerrelationships
No excessive compensation with misalignedincentives schemes vis-a-vis the stability ofthe bank / long-term career bankers, with thesame institution for many years, suggestingsignificant personal franchises in place,
acting as risk-deterrent
A balanced business expansion, wholly-funded by customer deposits and withlimited reliance on wholesale funding, and aliquid balance sheet
-
7/29/2019 Bank of Cyprus Presentation - May 2012
13/3313
Cyprus Banking
RegulatoryEnvironment
Cyprus Banking Regulatory Environment
The Banking System in Cyprus
Cyprus Banking Regulatory Environment
Bank of Cyprus Group
BOC - International Banking Services
Why Cyprus?
-
7/29/2019 Bank of Cyprus Presentation - May 2012
14/3314
Strong Banking Regulatory Environment
Central Bank of Cyprus (www.centralbank.gov.cy)
Independent banking supervision
Continuous and close monitoring of the liquidity andcapital adequacy position of financial institutions
Law compatible with EU Acquis Communitaire
Strict banking secrecy per Banking Law
-
7/29/2019 Bank of Cyprus Presentation - May 2012
15/3315
Security & Trust
Strict legal confidentiality restriction protecting bank customer.
It is prohibited by law to disclose any information concerning the
account of a specific customer of the bank , except in cases of acriminal offence
Banking Law 66(1) of 1997: 5.29 (i):
It is prohibited for any Director, the Chief Executive Officer, Manager,Officer, employee or bank representative and to any other person whohas by any means access to the Banks archives to give, reveal or use
for his own benefit any information concerning the account of aspecific customer of the Bank during the course of his employment orhis professional relationship with the bank, depending on the case, orafter the termination thereof
-
7/29/2019 Bank of Cyprus Presentation - May 2012
16/33
16
Bank of CyprusLegacies of the past,Shaping the future
Bank of Cyprus
The Banking System in Cyprus
Cyprus Banking Regulatory Environment
Bank of Cyprus Group
BOC - International Banking Services
Why Cyprus?
-
7/29/2019 Bank of Cyprus Presentation - May 2012
17/33
17
Group profile
Established in 1899, Bank of Cyprus Group (Group) is the leading banking andfinancial services group in Cyprus, with assets totaling43 bn
Market shares of over 41% and 36% in deposits and loans Market shares of over 40% in foreign currency deposits
Regional bank with focus on Corporate, Retail, International Banking and Wealthand Asset Management
Operations in countries with strong links with Cyprus:
Russia: Uniastrum Bank, 194 branches Greece: 187 branches Ukraine: 42 branches Romania: 10 branches UK 4 branches since 1955 Channel Islands: 1 branch
Representative Offices (Russia (3), Ukraine, S. Africa, Serbia)
Future Developments: Dubai presence and India Representative Office
-
7/29/2019 Bank of Cyprus Presentation - May 2012
18/33
18
Key Geographical Operations
Greece
187Number of Branches
Cyprus
135Number of Branches
Russia
194Number of Branches
United Kingdom
4Number of Branches
Ukraine
42Number of Branches
Romania
10Number of Branches
Channel Islands
1Number of Branches
Representative offices (6)
Russia
Ukraine
Serbia
South Africa
Russia
Ukraine
United
Kingdom
Cyprus
Greece
Romania
http://www.bankofcyprus.com/en-GB/http://www.bankofcyprus.com/en-GB/http://www.bankofcyprus.com/en-GB/ -
7/29/2019 Bank of Cyprus Presentation - May 2012
19/33
19
84% 87% 86% 89%92%
120% 120%129%
135% 137%
31.12.10 31.03.11 30.06.11 30.09.11 31.12.11
Net loans % Customer deposits **
Bank of Cyprus Peers*
77% 77% 78% 80% 78%
55% 55%50% 48% 49%
31.12.10 31.03.11 30.06.11 30.09.11 31.12.11
Customer deposits % Total assets
Bank of Cyprus Peers*
Healthy liquidity; one of the best loans/deposits ratios in Europe at 92%
Primarily deposit funded: 78% of assets funded by customer deposits
Limited reliance on wholesale funding and minimal repayments: only23 mn due in2012 (first call date) and25 mn due in 2013
Data shown is based on publicly available data as reported by the companies in their Interim and Annual statements.
* Weighted average of Peer group comprising National Bank of Greece, Alpha Bank, EFG Eurobank, Marfin Popular Bank
and Piraeus Bank.** Net Loans = Gross loans minus loan loss reserves
Solid Funding Structure: Strong Deposit Franchise andLimited Dependence on Wholesale Funding
Net loans 27,4 bn (31 December 2011)
Customer Deposits29,7 bn (31 December 2011)
Customer Deposits29,7 bn (31 December 2011)
Total assets37,8 bn (31 December 2011)
-
7/29/2019 Bank of Cyprus Presentation - May 2012
20/33
20
Increased Pre-provision Profitability and High Efficiency
Higher recurring income and contained cost growth lead to increased pre-provisionprofitability
FY11 Profit before provisions at805* mn (+11% yoy)
FY11 Cost-to-income ratio at 47,8% compared to 50,0% in FY10
Taking into consideration the impairment of GGBs, losses after tax for 2011 amounted to1.371 mn
* Profit before provision is shown before the impairment of the Greek Government Bonds
-
7/29/2019 Bank of Cyprus Presentation - May 2012
21/33
21
The Group remains focused on strengthening capital
* Adjusting for additional594 mn of Core Tier 1 capital and160 mn of Tier 1 capital
** Taking into account the full completion of the Capital Strengthening Plan
Including GGBs impairment of 74% and taking into account the592 mn increase in Core tier 1 capital fromthe Capital Strengthening Plan
the pro-forma Tier 1 capital ratio is estimated at 8,1% and the pro-forma Core Tier 1 capital ratio
is estimated at 6,0%
Taking into account the full completion of the Capital Strengthening Plan with the additional placement ofup to237 mn
the pro-forma Tier 1 capital ratio is estimated at 9,1% and the pro-forma Core Tier 1 capital ratiois estimated at 6,9%
-
7/29/2019 Bank of Cyprus Presentation - May 2012
22/33
22
Bank of Cyprus
A leader inInternational BankingServices
International Banking Services
The Banking System in Cyprus
Cyprus Banking Regulatory Environment
Bank of Cyprus Group
BOC - International Banking Services
Why Cyprus?
-
7/29/2019 Bank of Cyprus Presentation - May 2012
23/33
23
International Banking Services Sector
International Banking Services (IBS)
International Business Units (IBUs)
8 IBUs Small focused Customer Service Teams
Highly educated, multilingual and
specialised Business Relationship Bankers
6 Representative Offices
-
7/29/2019 Bank of Cyprus Presentation - May 2012
24/33
24
International Banking Services Sector
ISO 9001-2008 (Mar 2009)
&
EFQM Excellence model (Oct 2011) Committed to excellence level
Bank of CyprusInternational Banking Services
has been assessed and found in conformitywith the requirements of:
-
7/29/2019 Bank of Cyprus Presentation - May 2012
25/33
25
International Business Units (IBUs)
International Business Units
-
7/29/2019 Bank of Cyprus Presentation - May 2012
26/33
26
International Business Units
Provide personal and specialized, high quality service to: Companies registered in Cyprus or other jurisdictions
Non-resident individuals
Qualified, highly trained and experienced staff (English, Russian,French, German, Chinese and other foreign language speakers)
All clients serviced by a personal Customer Relationship Banker
Extended working hours 07:30 18:00
Confidentiality and trust
State-of-the-art technology
Paperless Banking, Efficiency, Accuracy
High Service Quality Targets annually reviewed based on: External customer surveys Internal customer surveys Focus Groups
-
7/29/2019 Bank of Cyprus Presentation - May 2012
27/33
27
Representative Offices
Moscow St. Petersburg Ekaterinburg
Kiev Ukraine
Johannesburg South Africa
Belgrade Serbia
India
Russia
-
7/29/2019 Bank of Cyprus Presentation - May 2012
28/33
28
Products and Services offered by the IBUs
Traditional Banking Services
Bank accounts International Payments Commercial loans Housing loans Facilities to trade Debit / credit cards Internet banking International factoring Forex / Hedging
Insurance (life & general)
Specialised Products
Trust Accounts
Escrow Accounts
Brokerage
Private Banking Products
Treasury related products
Custody services
Institutional Wealth
Management Discretionary Asset
Management
-
7/29/2019 Bank of Cyprus Presentation - May 2012
29/33
29
Account Management
Access to accounts:
Internet Banking
Mobile Banking
Cards
ATMs Branch Network
Secure payment instructions:
by internet
by fax
-
7/29/2019 Bank of Cyprus Presentation - May 2012
30/33
30
1bank
Telephone
Mobile Banking
Internet
Transfer between accounts International transfers
Batch payments
Digipass Device for secureaccess
Online account details and balances
Past transactions
Online view of status of transactions /payments
Statement ordering
Interest certificates
-
7/29/2019 Bank of Cyprus Presentation - May 2012
31/33
31
Digipass Device
Enhances level of security Generates one-time dynamic codes Multiple signatures
used for: Access to Internet Banking Third party transfers
Faxed instructions coding
-
7/29/2019 Bank of Cyprus Presentation - May 2012
32/33
32
International Banking Services
Thank you
-
7/29/2019 Bank of Cyprus Presentation - May 2012
33/33
Key information and contact detailsParticipation in indices:
CSE General Index , FTSE/CySE 20
FTSE/ATHEX Top 20FTSE Med 100, MSCI GreeceIndex,
FTSE New EU
DJ STOXX EU Enlarged TMI
Listing:
ATHEX BOCCSE BOCYISIN CY0000100111
www bankofcyprus com
Contacts
Louis PochanisSenior Manager
International Banking Services
Tel: +357 22 121730Email: [email protected]
mailto:[email protected]:[email protected]