Bank of Cyprus has stepped into a new era, where most of its legacy issues have been successfully resolved. The Bank is committed to a disciplined pursuit of its strategy over the coming years, in relation to expenses and capital, with an emphasis on improving its sustainable profitability through increasing revenues. It aims by 2025 to achieve a Return on Tangible Equity (ROTE) of more than 10%.
Bank of Cyprus Group attained a single-digit ratio of NPLs to loans a year earlier than initially anticipated, while significantly boosting its capital base beyond regulatory requirements. At the same time, the Bank exceeded expectations in terms of normalising cost of risk. During the COVID-19 pandemic, its handling of the loan portfolio and of borrowers was such that it did not lead to a new rise in NPLs.
Recognising that global challenges relating to climate change and society affect us all, Bank of Cyprus has focused even more on ESG policies, generating a specific agenda for these matters. We are re-orienting into a forward-looking organisation that actively participates in strengthening social structures, protecting the environment and ensuring effective corporate governance.
As trailblazers in Cyprus, Bank of Cyprus has since 2019 put into practice a digital transformation scheme aimed at better customer service and the optimization of internal operations, focusing on a leaner and more efficient operating model. In addition, nearly 80% of the Bank's private clients are digitally engaged, while digital transactions across the portfolio come to 88.93%. At the same time, the Bank has played a leading role in wider efforts underway to digitise and technologically upgrade the Cypriot economy and entrepreneurship.
The Bank constantly strives to become an even more client-centric organisation. Already underway is a targeted transformation program, which aims to allow the transition to a more modern way of conducting banking business, enhancing the digitization of services offered to clients as well as the digitization of internal operations.
The overall transformation aims to:
- lead to a more client-centric operating model by setting strategies per client department;
- redefine the distribution model in existing and new channels;
- digitally transform customer service and internal operations; and
- improve employee engagement through a robust set of initiatives enhancing Organisational Health.
In order to successfully carry out the design and implementation of Project Sunrise, the Bank established a Transformation Bureau in January 2021. The Bureau operates as a reference point, coordinating a three-year plan with more than 220 actions across 13 sectors of activity.