AstroBank has completed its previously announced €40.2m acquisition of the banking operations of its rival Cypriot banking company USB Bank.
Image: AstroBank takes over banking operations of USB Bank. Photo: courtesy of AstroBank Limited.
As a result of the transaction, USB Bank’s personnel, with the exception of certain properties, have been transferred to AstroBank. Additionally, USB Bank has ceased to perform banking operations.
The deal was announced in 2018 and has been funded from AstroBank’s own resources and was backed by a capital increase of €54m, primarily from its current shareholders.
The acquisition is expected to help AstroBank significantly consolidate its position in the Cyprus market. The bank particularly said that its balance sheet will surge by more than 50% to reach €2.1bn.
AstroBank estimates its gross loans to grow to €1.2bln, customer deposits to €1.9bn and total capital to more than €160m.
AstroBank CEO George Appios said: “With this transaction, the Bank’s Management and Shareholders reaffirm their commitment to the Cyprus market, the customers and all stakeholders, aiming to make the Bank even stronger, offering the best products and services”.
USB Bank is the transformation of the Yialousa Savings Bank, which was founded in 1925 in Yialousa. In 1974, the bank was recognized as an ‘Authorized Financial Institution’ under the supervision of the Central Bank of Cyprus.
However, the development of Yialousa Savings Bank saw an abrupt halt owing to the Turkish invasion in 1974, which left the banking company idle until 1990. Through government financing, the Yialousa Savings Bank revived its activities and commenced operations through a branch in Nicosia.
The bank carried out its expansion by opening more branches and subsequently was renamed to USB BANK. In 2011, Lebanon-based BLC Bank took full ownership of USB Bank.
Currently, USB Bank provides a range of personal and business banking products and services in Cyprus and overseas in all the major international currencies directly through the bank or through its network of foreign correspondents. It has a network of 14 branches in Cyprus along with 17 Automated Teller Machines (ATMs).
AstroBank, on the other hand, provides personal banking, corporate and commercial banking, international banking and wealth management services to its customers.