XM’s Costas Cleanthous to acquire majority stake in Ancoria Bank

The transformation of Cyprus’ banking sector continues unabated. Following the acquisition of Hellenic Bank by Eurobank and the upcoming acquisition of Astrobank by Alpha Bank Cyprus, Ancoria Bank also appears to be heading for a change in ownership.

According to InBusinessNews sources, Ancoria Bank is being transferred to Cypriot ownership, with XM co-founder Costas Cleanthous acquiring the majority stake and effectively taking control of the bank.

Reportedly, Ancoria Bank and Costas Cleanthous have reached a preliminary agreement, which is subject to approval by the Central Bank of Cyprus. The official request is expected to be submitted in the coming days.

Under the terms of the agreement, Cleanthous will acquire more than 50% of the bank’s shares, making him the primary majority shareholder.

In addition, businessman and banker Charalambos Panayiotou is also set to increase his shareholding, and after the agreement’s completion, he is expected to hold more than 20% of Ancoria Bank.

Currently, Cleanthous and Panayiotou jointly hold less than 10% of the bank’s share capital. With the finalisation of the agreements, their combined stake will increase significantly.

More specifically, once the preliminary agreements are finalised and approved by the Central Bank:

• Cleanthous is expected to hold approximately 55%
• Panayiotou around 25%
• Ancoria Insurance up to 20% of the bank.

It is worth noting that, as well-informed sources close to Cleanthous stressed to InBusinessNews, his investment in Ancoria Bank is strictly personal and is in no way connected to XM.

The Investment Goal

Regarding the purpose of the investment, sources indicate that through his increased stake in Ancoria Bank, Cleanthous aims to establish an independent, purely Cypriot commercial bank dedicated to supporting Cypriot entrepreneurship, the local public, and small to medium-sized enterprises (SMEs), thereby contributing to the broader Cypriot economy.

The ultimate goal is to develop the bank rationally, creating an institution that stands out for:

• Personalised service, in line with traditional personalised banking values
• Flexibility and responsiveness
• Secure, transparent, and clearly defined processes
• A strong personal relationship with all clients

According to the investor’s plan, special emphasis will be placed on supporting SMEs, which are considered the backbone of both the economy and Cypriot business sector.

Furthermore, sources note that Cleanthous’ vision for Ancoria Bank is to evolve into the most reliable and efficient financial partner for its clients, while also attracting new customers through enhanced services and strong core values. The objective is to redefine the banking experience, leveraging technology and maintaining a personal relationship with clients.

Ancoria Bank

Ancoria Bank Ltd is a licensed and registered Cypriot bank operating under the supervision of the Central Bank of Cyprus.

The bank currently offers a wide range of banking products and services for both individuals and businesses and operates three banking centers located in Nicosia, Limassol, and Larnaca.

According to Ancoria Bank’s latest financial results for the first half of 2024, the bank recorded net profits of €4.2 million, compared to net profits of €8.3 million at the end of 2023.

At the same time, gross loans totaled €322.2 million as of June 2024, compared to €318 million at the end of 2023.

The Total Capital Adequacy Ratio stood at 22.53% in the second half of 2024. The bank also maintained excess liquidity, with customer deposits reaching €742.9 million and a Liquidity Coverage Ratio of 1,957%.

Finally, the Non-Performing Loans (NPL) ratio stood at 1.8% in the first half of 2024, compared to 1.7% at the end of 2023.