Cyprus & World News

cdbbank enters new era

12 June, 2014

cdbbank announce that it has successfully concluded an agreement for a significant capital increase which will strengthen its equity base. The existing shareholders have agreed to fully subscribe for their share issue allocation and a financial services group of investors (investment and commercial banking), natively Russian but acting globally has also entered as shareholder of the bank. The existing and new investors of the cdbbank signed all the relevant agreements on 10th June 2014, with the funds for the capital increase having already been deposited in an escrow account with cdbbank. The agreements will be put into effect following the regulatory approvals by the Central Bank of Cyprus and the Commission for the Protection of Competition.

Significant financial highlights: 
- Tier 1 capital following new investment attaining 10%
- Group operational profit before provisions of €2.9m per management accounts to April 2014
- Total cost to income ratio reduced from 116% as at December 2012 to 45% as at April 2014

The Chairman of the bank stated: «This is a significant vote of confidence by both our existing shareholders and the new investors in our bank, in the Cyprus economy and is a reflection of the recent efforts of the Government and the Central Bank to put the economy on a more sound footing. We look forward to working closely with our new investors and our stakeholders in order to create additional value for our customers. cdbbank would like to take this opportunity to express its sincere appreciation to its customers and staff for their continued trust and on-going support during a particularly difficult financial environment for our country.»

Further announcements will be made in due course.