The profitable core of the BOC Group is driven by its domestic banking business, which is predominantly comprised of Consumer Banking and SME Banking, Corporate Banking and the International Banking Services division together contributing combined revenues of 291.3 million, or 53.7% of the Group’s total revenues for the six months ended 30 June 2016.
The Bank is a leading provider of retail banking services in Cyprus, with over 775,000 consumer and SME customers as at 30 June 2016. Consumer and SME Banking serves both Cypriot and non-Cypriot customers in Cyprus and provides a broad range of products and services.
The restructuring and recoveries division has been able to substantially increase the pace of loan restructuring as well as decrease the amount of NPEs held by the Bank. As domestic operations increase as a proportion of the BOC Group’s total operations, the correlation between the Bank’s profitability and the recovering Cypriot economy is expected to increase.
The BOC Group engages in the provision of insurance through two wholly-owned subsidiaries: EuroLife and GIC. The Bank acquired a stake in CNP as part of the acquisition of the Laiki Bank operations under the Laiki Transfer Decrees, though it does not exercise any active control over CNP.
Both EuroLife and GIC are leaders in the life assurance and general insurance businesses in Cyprus, respectively. EuroLife and GIC use the extensive branch and customer network of the Bank to sell insurance products with a focus on maintaining margins in the competitive market through sound underwriting and claims- handling. In addition, they aim to increase market share through a wider product and service offering, particularly by targeting customers below the age of 40.