Bank of Cyprus has signed an agreement for the acquisition of 95% of the share capital of the Ukrainian bank AvtoZAZBank for about E52 million.
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 of 26 branches and 18 seasonal cash offices. According to its unaudited financial statements at 31 October 2007, the net assets of the bank amounted to E15 million, total loans amounted to E85 million and total deposits to E82 million.
With the aforementioned purchase, the Bank of Cyprus Group expands in line with its plan in countries with economic growth potential, large population and relatively low banking penetration. Ukraine has a real GDP growth of 7.1% in 2006 and total loans increasing annually by more than 70%.
Bank of Cyprus plans to provide full banking services in Ukraine, also leveraging on its 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.