Bank of Cyprus acquires AvtoZAZBank in Ukraine

Bank of Cyprus Public Company Ltd announced that it has signed a sale and purchase agreement for the acquisition of 95% of the share capital of the Ukrainian bank AvtoZAZBank (the Bank) for the sum of about EUR52 mln.

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 consisting of 26 branches and 18 seasonal cash offices located in four main regions of Ukraine. The Bank employs 365 people. According to its unaudited financial statements at 31 October 2007, the net assets of the Bank amounted to EUR15 mln, total loans amounted to EUR85 mln and total deposits to EUR82 mln.

With the aforementioned purchase, the Bank of Cyprus Group expands in line with its strategic plan in countries with significant economic growth potential, large population, relatively low banking penetration and a high degree of recognition for Bank of Cyprus.

Ukraine has a buoyant economy with a real GDP growth of 7.1% in 2006 and total loans increasing annually by more than 70%. The low loans to GDP ratio of 54% combined with the high GDP growth rate indicate the significant growth prospects of the banking sector.

Bank of Cyprus will provide full banking services in Ukraine, also leveraging on its significant 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.