Cyprus Popular Bank

Cyprus Popular Bank Public Co. Ltd

Former type	Publicly traded limited company
Traded as	CSE: CPB
Industry	Financial services
Founded	1901
Defunct	2013
Headquarters	Nicosia, Cyprus
Area served	Greece, Romania, Serbia, Russia, Ukraine, Malta
Key people	Chris Pavlou, Acting (CEO)/Special Administrator
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]
Owner	Cypriot Government (84%)
Number of employees	9,000 (2010)^[2]
Subsidiaries	Investment Bank of Greece, Marfin Bank Romania, Marfin Bank Serbia, Rosprombank Russia, Marfin Bank Ukraine, Lombard Bank Malta
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 (from 2006 to 2011, known as Marfin Popular Bank) was the second largest banking group in Cyprus behind the Bank of Cyprus until it was shuttered in March 2013 and was split into two parts the 'good' Cypriot part was merged into the Bank of Cyprus (including insured deposits under 100,000 Euro) and the 'bad' part or legacy entity holds all the overseas operations as well as uninsured deposits above 100,000 Euro, old shares and bonds. The uninsured depositors were subject to a bail-in and became the new shareholders of the legacy entity. As at December 2014, the legacy entity is the largest shareholder of Bank of Cyprus with 9.6% but does not hold a board seat. All the overseas operations, of the now defunct Cyprus Popular Bank, are also held by the legacy entity, until they are sold by the Special Administrator, at first Ms Andri Antoniadou, who ran the legacy entity for two years, from March 2013 until 3 March 2015. She tendered her resignation due to disagreements, with the Governor of the Central Bank of Cyprus and the Central Bank Board members, who amended the lawyers of the legacy entity, without consulting her. Veteran banker Chris Pavlou who is an expert in Treasury and risk management took over as Special Administrator of the legacy entity in April 2015. The legacy entity is pursuing legal action against former major shareholder Marfin Investment Group.

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 on 30 June 2012 and as of March 2013 it is being dismantled as part of the 2012–2013 Cypriot financial crisis.^[5]

History

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, Ontario, 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 Banca della Svizzera Italiana (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] 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.
The 2012–2013 Cypriot financial crisis resulted in financial difficulties at CPB. The Cypriot state recapitalized CPB on 30 June 2012 with the result that the government acquired 84% of the bank's equity. This increased the bank's core tier 1 capital ratio towards 9%, the level mandated by the European Banking Authority.
In early 2013 CPB renamed its Greek branches to CPB Bank and on 26 March the bank sold them to Piraeus Bank. Laiki was split into a good and bad bank, the good bank (Cyprus operations) merged with Bank of Cyprus and the bad bank is in the process of being sold and finally shuttered. The board and CEO were replaced on 27 March. The bad bank was being run by a Special Administrator Ms Andri Antoniadou who was acting CEO until 3 March 2015. Veteran banker Chris Pavlou took over as Special Administrator in April 2015.^[13]^[14]

References

1 2 3 4 "Annual Report 2010" (PDF). Marfin Popular Bank. Retrieved 5 May 2011.
↑ "Fact Sheet 2010" (PDF). Marfin Popular Bank. Retrieved 5 May 2011.
↑ "www.cse.com.cy".
↑ source "The Report: Cypriot Banks" Check |url= value (help). BBC Radio 4 The Report. 2013.
↑ "Laiki Financial Report I/2012" (PDF). Laiki. 2012. p. 2.
↑ "Laiki Bank Personal Products and Services". Bank of Cyprus.
↑ "Marfin Bank home".
↑ "Rosprombank Russia".
↑ "A new era in Cyprus corporate history". Cyprus Mail archive article. September 21, 2006.
↑ "Marfin Popular Bank acquires bank in Estonia". Financial Mirror. 2007-06-14. Archived from the original on 2007-09-28. Retrieved 2007-06-16.
↑ "New Cypriot sponsor deal aims to fight problems". Reuters. June 15, 2007. Retrieved 2007-06-16.
↑ https://web.archive.org/web/20110228033504/http://www.laiki.com/web/w3au.nsf/WebContentDocsByID/ID-4EAFE339EFBE0085C2257826003D469D. Archived from the original on February 28, 2011. Retrieved April 23, 2011. Missing or empty |title= (help)
↑ Jan Strupczewski; Annika Breidthardt (25 March 2013). "Last-minute Cyprus deal to close bank, force losses". Reuters. Retrieved 25 March 2013.
↑ "Eurogroup signs off on bailout agreement reached by Cyprus and troika". Ekathimerini. 25 March 2013. Retrieved 25 March 2013.

External links

Wikimedia Commons has media related to Laiki Bank.

FTSE/Athex Large Cap companies of Greece (June 2015)

Aegean Airlines Alpha Bank Coca-Cola HBC Ellaktor Eurobank Ergasias EYDAP Folli Follie GEK Terna Grivalia Properties HELEX Group Hellenic Petroleum Jumbo Lamda Development S.A. Metka Motor Oil Hellas Mytilineos National Bank of Greece OPAP OTE Piraeus Bank Piraeus Port Authority Public Power Corporation Terna Energy Titan Cement Viohalco

Members of Euro Banking Association

Austria	Allgemeine Sparkasse Oberosterreich Bank für Tirol und Vorarlberg AG BKS Bank AG Erste Group Bank AG Oberbank AG Oesterreichische Nationalbank Raiffeisen Zentralbank Österreich AG Raiffeisenlandesbank Oberösterreich AG Raiffeisen-Landesbank Tirol AG Steiermärkische Bank und Sparkassen AG

Belgium	Dexia Bank NV KBC Bank NV Bank van De Post

Cyprus	Bank of Cyprus Hellenic Bank

Denmark	Amagerbanken A/S Arbejdernes Landsbank A/S Danske Andelskassers Bank A/S Danske Bank A/S DiBa Bank A/S Djurslands Bank A/S Jyske Bank A/S Nordjyske Bank A/S Nørresundby Bank Østjydsk Bank A/S Ringkøbing Landbobank Roskilde Bank A/S Skjern Bank Spar Nord Bank Sparekassen Sjælland Sydbank A/S Vestfyns Bank A/S Vestjysk Bank

Finland	Aktia Bank PLC Bank of Åland PLC Pohjola Bank PLC S-Bank LTD. Tapiola Bank LTD

France	Banque Michel Inchauspé - BAMI Banque Palatine BNP Paribas SA BPCE BRED Banque Populaire Crédit Agricole SA Crédit Coopératif Crédit du Nord Crédit Mutuel Arkéa Credit Mutuel CIC Banque HSBC France La Banque postale Natixis Société Générale

Germany	Berenberg Bank BHF Bank Bremer Landesbank Commerzbank AG Deutsche Bank AG Deutsche Bundesbank Deutsche Postbank DZ Bank AG Europe Arab Bank Frankfurt Hamburger Sparkasse AG J.P. Morgan Chase Bank AG Landesbank Baden-Württemberg Landesbank Berlin Holding Landesbank Hessen-Thüringen Oldenburgische Landesbank SECB Swiss EURO CLEARING Bank GmbH The Bank of New York Mellon, Frankfurt Branch VTB Bank (Deutschland) AG

Greece	Alpha Bank SA Eurobank Ergasias SA National Bank of Greece SA Piraeus Bank SA

Hungary	Magyar Nemzeti Bank OTP Bank FHB Mortgage Bank Merkantil Bank Kereskedelmi és Hitelbank Magyar Takarékszövetkezeti Bank MKB Bank Porsche Bank Hungaria Kinizsi Bank MagNet Bank Hanwha Bank Budapest Hitel- és Fejlesztési Bank

Ireland	Allied Irish Banks Bank of Ireland

Italy	Banca Agricola Popolare di Ragusa Banca del Fucino Banca del Piemonte Banca delle Marche Banca di Imola Banca Monte dei Paschi di Siena Banca Nazionale del Lavoro Banca Popolare del Lazio Banca Popolare dell'Emilia Romagna Banca Popolare di Milano Banca Popolare di Sondrio Banca Popolare di Vicenza Banca Sella Banca Tercas Banco Popolare Cassa di Risparmio della Provincia di Chieti Cassa di Risparmio di Cesena Cassa di Risparmio di Fermo Nuova Cassa di Risparmio di Ferrara Cassa di Risparmio di Loreto Cassa di Risparmio di Ravenna Credito Emiliano Credito Valtellinese ICCREA Banca Intesa Sanpaolo Istituto Centrale delle Banche Popolari Italiane Raiffeisen Landesbank Südtirol – Cassa Centrale Raiffeisen dell'Alto Adige Südtiroler Volksbank – Banca Popolare dell'Alto Adige UBI Banca UniCredit Veneto Banca

Luxembourg	Banque et Caisse d'Épargne de l'État Banque Raiffeisen Banque Internationale à Luxembourg SA KBL European Private Bankers Société Générale Bank & Trust

Netherlands	ABN Amro Bank NV De Nederlandsche Bank ING Bank NV Rabobank Nederland

Poland	Bank BPH SA Narodowy Bank Polski

Portugal	Banco BPI SA Banco Comercial Português Crédito Agrícola Caixa Geral de Depósitos Novo Banco

Slovenia	Banka Slovenije

Spain	Banco Bilbao Vizcaya Argentaria, S.A. Banco Popular Español, S.A. Banco Sabadell, S.A. Bankinter, S.A. Banco Santander, S.A. CaixaBank, S.A. (La Caixa) Catalunya Banc, S.A. (CatalunyaCaixa) Kutxabank, S.A. ABANCA Corporación Bancaria, S.A. (Abanca) Caja Laboral Popular, Cooperativa de Crédito (Caja Laboral) Banco Cooperativo Español, S.A. (Caja Rural) CECABANK, S.A.

Sweden	Skandinaviska Enskilda Banken Svenska Handelsbanken Swedbank AB Nordea Bank AB

United Kingdom	Bank of Tokyo-Mitsubishi UFJ Ltd. Barclays Bank PLC Citibank NA DNB Bank (NOR) HSBC Bank PLC JPMorgan Chase Bank, N.A., London Branch Kookmin Bank International Ltd. Lloyds Bank PLC MashreqBank psc (UAE) Royal Bank of Scotland PLC UBS AG Wells Fargo Bank NA

Non-EU	Bank of China (CHN)

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