Cyprus Popular Bank

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Cyprus Popular Bank Public Co. Ltd
Former type Publicly traded limited company
Traded as CSE: CPB, Athex: CPBANK
Industry Financial services
Founded 1901
Defunct 2013
Headquarters Nicosia, Cyprus
Area served Cyprus, UK, Romania, Serbia, Russia, Ukraine, Malta
Key people Andri Antoniadou, Acting (CEO)
Products Banking, insurance, investment management
Revenue €1.012 billion (2010)[1]
Profit €87.1 million (2010)[1]
Total assets €42.58 billion (end 2010)[1]
Total equity €3.641 billion (end 2010)[1]
Employees 9,000 (2010)[2]
Website www.laiki.com
The Marfin Laiki Bank in Finchley, North London.
Notice placed in the window of a London branch in 2013.
The interior of the Laiki Bank, Finchley, filled with boxes and cabinets after closure.

Cyprus Popular Bank (formerly known as Marfin Popular Bank) was the second largest banking group in Cyprus behind the Bank of Cyprus until it failed in 2012.

Its shares were listed on the Cyprus Stock Exchange and the Athens Stock Exchange. CPB had a network of more than 295 branches in Cyprus, Russia, Ukraine, Romania, Serbia, the UK and Malta. The bank had applied to open a representative office in Beijing, People's Republic of China.[3]

Trading on the island as Laiki Bank (Laiki being the Greek word for Popular), as of September 2012 it held a 16% share of the market in loans and a 14.4% share of deposits. The Bank made a series of large loans, many to Greek companies prior to and during their financial crisis. What followed has been described as "billions handed out in bad loans created a financial time-bomb".[4] After the bank collapsed, it was rescued by the Cypriot government, which took 84% ownership in 30 June 2012 and as of March 2013 it is being dismantled as part of the 2012–2013 Cypriot financial crisis.[5]

History[edit]

In 1901, four leading citizens of Limassol—Agathoclis Francoudis, Ioannis Kyriakides, Christodoulos Sozos and Neoklis Ioannides—established the Popular Savings Bank of Limassol to encourage saving among the workforce. More than two decades later, in 1924, the bank changed its name from the Popular Savings Bank of Limassol to the Popular Bank of Limassol. The bank also became the first company in Cyprus to register as a public-traded company.

Then in 1967, the Popular Bank of Limassol changed its name to Cyprus Popular Bank (CPB) to reflect the bank’s expansion beyond Limassol. Expansion beyond Limassol followed quickly, with the establishment of its first branches in Nicosia, Famagusta (1969), and Paphos and Larnaca (1970). Also in 1970, Midland Bank acquired 22% of the company's shares, making Midland a major shareholder in CPB. The next year CPB relocated its headquarters from Limassol to Nicosia.

  • 1974 CPB established its first London branch.[6]
  • 1983 CPB acquired all the Cyprus operations of Grindlays Bank located in the area under government control.
  • 1992 CPB opened the first branch of European Popular Bank in Athens. CPB owned 58% of the shares of the bank; other shareholders included HSBC (formerly Midland Bank) and Greek and Cypriot investors. CPB retained branches in Heraklion and Thessaloniki
  • 1995 CPB opened its first representative offices in South Africa and in Toronto, Canada.
  • 1996 CPB opened its first representative offices in Australia.
  • 1997 CPB opened its first representative offices in Serbia[7] and in Russia ("Rosprombank")[8]
  • 1998 CPB establishes a representative office in New York. (NY State Banking Dept says State chartered).
  • 2000 The Cyprus Popular Bank Group changed its name to Laiki Group.
  • 2001 The Laiki Group established a subsidiary in Australia with five branches.
  • 2005 The Group established Laiki Bank (Guernsey), and purchased Bank Centrobank in Serbia.
  • 2006 The Greek Marfin Investment Group acquired HSBC's shares in Laiki Bank, establishing a strong minority share position. Subsequently, the Marfin Investment Group through more acquisitions managed to take control of Laiki Bank, which it re-branded as Marfin Popular Bank.[9] In Greece, the Marfin Group consolidated Egnatia, Laiki and Marfin to form Marfin Egnatia Bank, which is the 95%-owned Greek subsidiary of Marfin Popular Bank.
  • 2007 The bank announced the planned takeover of 50.12% of the share capital of AS SBM Pank, a bank in Estonia.[10]
MPB also acquired 99.2% of the shares of Marine Transport Bank Ukraine for US$156 million. This bank was founded in 1993 as Marine Trade Bank and changed its name to Marine Transport Bank in 1996. It has its headquarters in the Odessa region and has 86 branches.
Lastly, MPB acquired 43% of the share capital of Lombard Bank Malta for €48 million from BSI of Lugano. CPB now holds c. 49% of Lombard Bank Malta.
  • In 2007, the bank announced a multi-million financial deal to sponsor the football First Division in Cyprus until 2010.[11]
  • 2008 Marfin Popular Bank completed its acquisition of 50.4% of the shares of CJSC RPB Holding, parent company of the Rossisysky Promishlenny Bank (Rosprombank), for €83 million. The acquisition makes Marfin the first Greek or Cypriot bank to acquire control of a bank in Russia.
  • In 2010, they launched a new mobile banking and mobile trading service. In the same year, the company was selected as the bank of the year in Cyprus by the Banker.
  • 2010 MPB sold 85% of Laiki Bank Australia to Bank of Beirut. The Australian bank received a new name, Beirut Hellenic Bank.[12][dead link] At the time, the bank had a branch in Adelaide, four branches in Melbourne and five branches in Sydney.
  • 2011 MPB sold the majority of its shareholding in its Estonian subsidiary and returned to its historic name of Cyprus Popular Bank (CPB).
  • In 2012 CPB converted its Greek subsidiary into a branch of the parent bank.

References[edit]

  1. ^ a b c d "Annual Report 2010". Marfin Popular Bank. Retrieved 5 May 2011. 
  2. ^ "Fact Sheet 2010". Marfin Popular Bank. Retrieved 5 May 2011. 
  3. ^ "www.cse.com.cy". 
  4. ^ source "The Report: Cypriot Banks". BBC Radio 4 The Report. 2013. 
  5. ^ "Laiki Financial Report I/2012". Laiki. 2012. p. 2. 
  6. ^ "Laiki Bank Personal Products and Services". Bank of Cyprus. 
  7. ^ "Marfin Bank home". 
  8. ^ "Rosprombank Russia". 
  9. ^ "A new era in Cyprus corporate history". Cyprus Mail archive article. September 21, 2006. 
  10. ^ "Marfin Popular Bank acquires bank in Estonia". Financial Mirror. 2007-06-14. Archived from the original on 2007-09-28. Retrieved 2007-06-16. 
  11. ^ "New Cypriot sponsor deal aims to fight problems". Reuters. June 15, 2007. Retrieved 2007-06-16. 
  12. ^ http://www.laiki.com/web/w3au.nsf/WebContentDocsByID/ID-4EAFE339EFBE0085C2257826003D469D
  13. ^ Jan Strupczewski; Annika Breidthardt (25 March 2013). "Last-minute Cyprus deal to close bank, force losses". Reuters. Retrieved 25 March 2013. 
  14. ^ "Eurogroup signs off on bailout agreement reached by Cyprus and troika". Ekathimerini. 25 March 2013. Retrieved 25 March 2013. 

External links[edit]