Filenews 5 September 2022 - by Theano Thiopoulou
Hundreds of lockouts in bank branches and thousands of departures of bank employees have been recorded in recent years, indicating the rapid contraction that has occurred in the banking sector. The number of branches of Cypriot banks decreased to 260 branches in 2021 from 282 in 2020 and 328 in 2019, i.e. in three years the banking network decreased by 26.15%. In nine years, bank employees decreased by 59.22%, leaving the profession 4,781 employees (not including the 550 employees of the Bank of Cyprus who recently retired).
The bank branches that closed in the nine years were 590. Based on the annual report 2021 of the Association of Banks presented by "F" and in view of the annual general meeting on September 14, the data reflect the rapid shrinking of the branch network and the reduction of staff through generous voluntary retirement plans, without including the departure of 550 employees from the Bank of Cyprus that took place this year or the closure of branches by almost all banks.
The situation in the banking system has changed dramatically in recent years with the closure of branches and mergers, while the upheavals continue with the diversification of the growth strategy, fewer branches and the digitization of transactions.
The comparative data capture the dramatic contraction of bank customer service points, which continues as banks try to streamline their operations and move to an even larger scale in the digital age. The situation in the banking system has changed dramatically in recent years with the closure of branches and mergers, while the upheavals continue with the diversification of the growth strategy.
Based on the data of the Association of Banks for 2021, the main data of credit institutions are the following:
● Bank of Cyprus: Number of branches 90, ATM 156, employees 2,996 (not included in the 2021 data, the closure of branches and the departure through a voluntary exit plan of 550 employees that took place in 2022).
● Hellenic Bank: Number of branches79, ATM 192, employees 2,610.
● Alpha Bank: Number of branches 17, ATM 20 and number of employees 492.
● National Bank of Greece (Cyprus): Number of branches 2, ATM 5, employees 128.
● CDB Bank: Number of branches 2, ATM 0, employees 148.
● Astrobank: Number of branches 14, ATM 15, number of employees 444.
● Societe Generale Cyprus: Number of stores 3, ATM 3, number of employees 102.
● Eurobank Cyprus: Number of branches 8, ATM 0, number of employees 435.
● Ancoria Bank: Number of branches 3, ATM 5, number of employees 108.
Banking Association Meeting on the 14th of the month
At the Nicosia Municipal Theatre, on Wednesday, September 14, 2022, with the presence of people after the summer of 2019, this year's annual general meeting of the Association of Cyprus Banks is organized. In Cyprus, as an official guest of the Cyprus Bank Association, to make a special presentation at the meeting will be the President of the European Payments Council, Javier Santamaria. According to the announcement of the Association, in the presence of the political leadership of the country, executives from the market, the economy, professional organizations, state services and independent authorities, the Minister of Finance Konstantinos Petrides and the Governor of the Central Bank Konstantinos Herodotou will welcome the meeting of the Association of Banks. The ceremonial part will be preceded by the elections of the annual general meeting, a process from which the new chairman of the Board of Directors will be elected for a term of one year. Together, the other three members of the executive committee of the board of directors of the organization, who occupy corresponding positions of vice-presidents in the body, will be known.
The Association represents 10 banks
The Association of Cyprus Banks represents 10 banks operating in Cyprus, as well as seven associate members, which includes a state-owned financial institution, two asset management companies and a debt service. Member banks employ around 9,000 professionals and have a market share of more than 90% in terms of local lending and deposits. In addition to the traditional deposit and lending, banks have established their own subsidiaries that provide short- and medium-term credit, financial facilities for the purchase of rent, investment services (such as asset management, investments, advice and brokerage), Factoring and discounting services, electronic and telephone banking, private banking as well as types of insurance services.
