Costas Cleanthous, co-founder and majority owner of contracts for differences (CFDs) broker XM, is acquiring about a 55 per cent stake in Cyprus’ Ancoria Bank, local media InBusinessNews and Economy Today reported. The acquisition, however, will be made in a personal capacity, without XM’s involvement.
CFDs Owner Buys Bank
According to local reports, Cleanthous and Ancoria Bank have already reached preliminary agreements, which are now pending approval from the Central Bank of Cyprus. The deal will clearly make Cleanthous the controlling owner of the Cypriot bank.
Apart from Cleanthous, businessman and banker Charalambos Panayiotou will also acquire 25 per cent of the bank. Ancoria Insurance will hold the remaining 20 per cent stake.
Cleanthous’ interest in Ancoria Bank did not arise suddenly. He and Panayiotou currently hold less than 10 per cent of the bank’s share capital. After the new deal, they will effectively control 80 per cent of the bank together.
Despite his involvement with XM, the bank will have no association with the CFDs broker.
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Strengthening the Cypriot Economy
Ancoria Bank operates from branches in Nicosia, Limassol, and Larnaca, offering banking products to individuals and businesses. In the first half of 2024, the bank posted €4.2 million in profits, compared to €8.3 million at the end of 2023.
Customer deposits at the bank reached €742.9 million at the end of June 2024. Further, the bank’s gross loans totalled €322.2 million, an increase from €318 million at the end of 2023. However, its non-performing loans ratio stood at 1.8 per cent at the end of the first half of 2024.
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The local reports outlined that Cleanthous’ goal is to establish a fully Cypriot-owned commercial bank focused on supporting local entrepreneurs, the general public, and small to medium-sized enterprises (SMEs), which is key to strengthening the Cypriot economy.
This article was written by Arnab Shome at www.financemagnates.com.
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