AstroBank’s acquisition of Cyprus Development Bank falls through

AstroBank announced on Tuesday that, following a statement issued on September 11, 2023, regarding the potential acquisition of the Cyprus Development Bank (CDB), the two entities have failed to reach a mutual agreement.

“AstroBank remains committed to its business plan, which has led to significant operational improvements, quality customer service, and improved profitability over the last three years,” the announcement stated.

Furthermore, the bank said that within the scope of its strategy, AstroBank “will continue to explore non-organic growth opportunities”.

Before the aforementioned date, on September 9, the Cyprus News Agency CNA) cited sources saying Astrobank had already submitted an offer to CDB Bank, while officials from both banks did not wish to comment on the matter due to confidentiality issues.

Based on the 2022 results, CDB Bank had total assets of €0.55 billion, which corresponded to approximately 21 per cent of Astrobank’s total assets (€2.73bn at the end of 2022).

CDB Bank’s total gross loans amounted to €250 million and deposits to €487m, while deposits with the Central Bank amounted to €220m.

At the end of 2022, CDB Bank had a non-performing loan ratio of 26.2 per cent, with Astrobank’s corresponding ratio at 19.5 per cent during the same period.

CDB Bank had 138 employees at the end of 2022 and in addition to its head office in Nicosia, it had two branches in Nicosia and one in Limassol.

Accordingly, Astrobank, based on the financial results of 2022, employed 465 people and had 14 stores and business centres throughout Cyprus.