Cyprus Popular Bank

Cyprus Popular Bank Public Co. Ltd

Former type	Publicly traded limited company
Traded as	CSE: CPB, Athex: CPBANK
Industry	Financial services
Founded	1901
Defunct	2013
Headquarters	Nicosia, Cyprus
Area served	Cyprus, UK, Romania, Serbia, Russia, Ukraine, Malta
Key people	Andri Antoniadou, Acting (CEO)
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]
Employees	9,000 (2010)[2]
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 (formerly known as Marfin Popular Bank) was the second largest banking group in Cyprus behind the Bank of Cyprus.

Its shares were listed on the Cyprus Stock Exchange^[3] 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.

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

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, 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 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 is due to be split into a good and bad bank, the good bank will be merged with Bank of Cyprus and the bad bank to be shuttered. The board and CEO were replaced on 27 March.^[13][14]

References

External links

Wikimedia Commons has media related to Laiki Bank.

• www.laikibankgroup.com
• Official website
  • Financial Report of the Group for the period January – June 2012
  • Board of Directors

v t e Members of Euro Banking Association Austria Allgemeine Sparkasse Oberösterreich 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 Aktiengesellschaft 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 Ringkjøbing 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 AE 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 S.p.A. Banca di Imola S.p.A. Banca di Romagna S.p.A. Banca d'Italia Monte dei Paschi di Siena Banca Monte Parma Banca Nazionale del Lavoro Banca Popolare del Lazio Banca Popolare dell'Emilia Romagna Banca Popolare di Milano Banca Popolare di Sondrio Banca Popolare di Spoleto Banca Popolare di Vicenza Banca Sella Bancaperta S.p.A. Banco Popolare Società Cooperativa Cassa di Risparmio della Provincia di Chieti S.p.A. Cassa di Risparmio della Provincia di Teramo S.p.A. Cassa di Risparmio di Cesena S.p.A. Cassa di Risparmio di Fermo S.p.A. Cassa di Risparmio di Ferrara S.p.A. Cassa di Risparmio di Loreto S.p.A. Cassa di Risparmio di Ravenna S.p.A. Credito Emiliano S.p.A. 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 Unipol Banca UniCredit Veneto Banca Luxembourg Banque et Caisse d'Épargne de l'État Banque Raiffeisen Dexia 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 Banco Espírito Santo Caixa Central de Crédito Agrícola Mútuo Caixa Geral de Depósitos Slovenia Banka Slovenije Spain Banco Bilbao Vizcaya Argentaria, SA Banco Español de Crédito, S.A. (Banesto) Banco Pastor, S.A. Banco Popular Español, S.A. Banco Sabadell, S.A. Bankia, S.A. Bankinter, S.A. Banco Santander, S.A. Caixa d'Estalvis i Pensions de Barcelona (La Caixa) Caixa d'Estalvis de Catalunya, Tarragona i Manresa (CatalunyaCaixa) Gipuzkoa eta Donostiako Aurrezki Kutxa (Kutxa) Bilbao Bizkaia Kutxa NCG Banco, S.A. (Novagalicia Banco/Evo Banco) Caja Laboral Popular Cooperativa de Crédito (Caja Laboral) Grupo Caja Rural / Banco Cooperativo Español, SA (Caja Rural) Spanish Confederation of Savings Banks Sweden Skandinaviska Enskilda Banken Svenska Handelsbanken Swedbank AB Nordea Bank AB United Kingdom Bank of America NA Bank of Tokyo-Mitsubishi UFJ Ltd. Barclays Bank PLC Citibank NA HSBC Bank PLC Kookmin Bank International Ltd. Lloyds TSB Bank PLC National Australia Bank Limited National Westminster Bank PLC Royal Bank of Scotland PLC Standard Chartered Bank UBS AG Wells Fargo Bank NA Non-EU Bank of China (CHN) DnB NOR Bank (NOR) MashreqBank psc (UAE) Associate Members [ XMLdation Oy (FIN) http://www.xmldation.com]