Eurobank’s Commitment to Cyprus

Technology is the catalyst of growth and progress all around and banking is no exception. In my 35 years in the financial world, I have witnessed many shifts of culture, changes in the labour market with different skills in demand each time, novel working arrangements and new tools and ways of doing business. But never in the past has the pace of change been so rapid. No-one could have imagined a few years ago that a pandemic would catapult remote working to the forefront and make the home as normal a workplace as the office. And very few would have argued, even as recently as at the beginning of the century, that the main way in which we serviced our customers would be not via a traditional branch or even a computer or laptop, but through a small mobile device, so cheap and so powerful that it is readily available and connects six of the nine billion inhabitants of the planet, no matter when they ask for our services or where they happen to live.

At Eurobank, we are certain that only those who are able to accurately foresee rising trends and proactively adapt to future needs will be able to thrive in an ever more fluid and competitive financial environment and, especially, in the world of banking. The challenge for banking is heightened by the fact that we need to reconcile two conflicting aspirations: to swiftly embrace new ways of relating to our clients while retaining the same values and principles that brought us together in the first place. After all, banking is and will remain a traditional business. Its foundation and cornerstone is trust. We are very conservative in this respect – our fiduciary duty towards our customers comes above any other consideration – but we are also very open to innovation. We want to provide them with the best possible service – top-of-the-class at all times – and to always reach their high expectations.

How does all this materialize in our everyday work? Through constant, ever-growing investment in technology. Our most recent endeavour is the deployment of a brand-new core banking system in some of our subsidiaries. A core IT system lies at the heart of every banking franchise; not only the tens of thousands of transactions that we perform every day but also the millions of process steps we execute pass through the core system. Without it, nothing happens. This is why it has to be both efficient and resilient, with no compromise in either aspect.

We take great pride in the performance and the potential of Eurobank Cyprus. We have top talent In Cyprus and, at the same time, we are serving a tech-savvy, market-aware and rightly demanding clientele. This is why we decided to install our new core banking system in Cyprus first, opting for the cutting-edge technology of Temenos, a global leader in the field. Eurobank Cyprus has been running on Temenos’ core system since last year and at the beginning of 2024 we added a crucial new component – a wealth management module. We are particularly pleased to be able to provide our loyal customers with the personalized services that this technology allows. Now, there is a huge range of possibilities for wealth management. Whether in advisory or in transactions, in discretionary management or in facilitating execution of orders, our new offering beats everything we knew in the past and we are excited by the feedback we are receiving! Eurobank Cyprus’ IT platform is our blueprint model, which will be deployed in our other subsidiary in Luxembourg. Eurobank Private Bank Luxembourg focuses on this field and is licensed and located in the strictly supervised centre of European banking. It also has a London branch to serve resident or visiting clients.

We are particularly pleased to have Cyprus and the wealth management business at the forefront of our Group’s evolution. We are committed to the Cypriot market, a core market for Eurobank on an equal footing with Greece and Bulgaria.

We aim to significantly expand our footprint and go beyond local. If only by virtue of its geographical location, Cyprus is a natural springboard and we intend to make the most of our privileged place in the Cypriot market.

Cyprus is central to all our Group’s plans. In a major strategic move, we have increased our shareholding and acquired a majority stake in Hellenic Bank and proceeded with a mandatory tender offer for the remaining shares. Hellenic has experienced staff and a large, loyal customer base. Its retail focus fully complements the activities of Eurobank Cyprus. Above all, our investment in Hellenic – the Group’s most significant investment in more than two decades – is proof of our belief in the positive prospects of the Bank and of the Cypriot economy.

Eurobank has evolved into a robust regional banking group. Continued solid profitability and a strong balance sheet allowed our European regulators to approve a dividend distribution out of the 2023 net profit. This is the normal process for any company but it is the first dividend in 16 years for our shareholders. Our financial results last year were the best we have reported in the entire history of the Bank. Our non-Greek operations excel, even amidst an overall impressive performance, contributing 30% of our total profitability. We aim to further strengthen our successful multi-stream business model, aiming for our regional activities to contribute 50% of the Group’s income by 2026. Cyprus is central to this plan, which means that you are central to Eurobank’s future. All our planning and all our efforts aim at honouring your trust and providing the top services you deserve. Our reward is your continued trust and we look forward to assisting you in fulfilling your aspirations, both now and in the future.

By Fokion Karavias, Chief Executive Officer, Eurobank SA

(This article first appeared in the 2024 edition of The Cyprus Journal of Wealth Management, commissioned by Eurobank Cyprus and published by IMH. Click here to view the article. Click here to view the entire magazine online.)