125 years with the Bank of Cyprus
The history of the Bank of Cyprus is and always will be intertwined with that of the country.
This perfect connection was highlighted in a devastating response by the Bank of Cyprus general manager in 1955 when, during a general meeting of shareholders, he remarked on the results, saying they’d like to see more profits. The late Georgios Garanis encapsulated the mindset of the board of directors:
“As financial institutions, banks have a mission not only to generate maximum profit but also to serve commerce and improve and promote economic conditions in the country. This is even truer for the Bank of Cyprus, whose existence and progress are intertwined with the progress of our country.”
Indeed, the existence and progress of the Bank of Cyprus is interwoven with the progress of Cyprus.
But let’s go back to the very beginning…
1899-1949
During the closing years of the 19th century, as Ottoman domination came to an end, Cyprus found itself on the verge of a new era, this time under British rule. This change heralded a rekindling of commerce, while also ushering in a period of major economic and social challenge. The people of Cyprus, living mostly off agriculture, faced heavy taxation and usury.
In this context of struggle and despair, a beacon of hope appeared thanks to the vision and fortitude of a group of enlightened Cypriots, among whom the lawyer Ioannis Economides. These visionaries, united in their faith in savings and cooperation, launched an undertaking that would forever change the economic lay of the land.
1899
On the first day of January 1899, with Economides as the manager and founding member, the Nicosia Savings Bank was established, signaling the beginning of an institution that would become synonymous with resilience, growth and prosperity. A new idea was introduced: the accumulation of capital via weekly payments, allowing depositors to buy shares and in this way invest in their future with just a shilling a week.
By May, the Faneromeni coffeeshop – where deposits were made – became a hub for hope and high aspirations. Many people who had set some money aside from their meager earnings lined up to deposit their savings.
1900
The first meeting of the Bank, held in February 1900, projected a hopeful image. There, Economides proudly announced the accumulation of more than 3,000 pounds – proof of the faith that the 362 shareholders had placed in this newly-established institution.
The concept of savings spread and took hold throughout the island, setting off a movement which would eventually lead to the abolition of usury.
1912
The year 1912 saw a major transformation: the Nicosia Savings Bank evolved into Bank of Cyprus, a limited liability company possessing a vision that went well beyond its initial scope. This transformation was not just the change in name, but a statement of intent – a commitment to serve the growing needs of an entire nation.
1936
The first decades of the Bank of Cyprus were marked by several milestones and achievements, such as the hiring in 1936 of Eleni Kyrou, the first female employee that symbolised a progressive turn towards inclusivity.
1939
But the outbreak of World War II brought with it daunting challenges, severing the link between Cyprus and foreign markets and causing a financial crisis that saw the Bank’s deposits decline at an alarming rate.
Thanks to prudent management, and despite government restrictions, the Bank of Cyprus held its own in this storm and avoided resorting to lending. Deposits started trickling back, and the Bank came out more robust and ready to face the future, whatever that might be.
1943
During the 1940s, which were overshadowed by the global conflict and the emergence of national consciousness, the Bank of Cyprus came up with the ‘Cyprus for Cypriots’ slogan and embarked on a transformational journey with a series of mergers with other banks across the island.
It was no longer just a bank; it became a financial institution that belonged to every Cypriot. The Bank adopted as its official emblem the first Cypriot bronze coin dating from the time of Emperor Claudius. The emblem bears the inscription ‘Koino Kyprion’, meaning Cyprus for the Cypriots
1950-1979
As the 1950s dawned, the Bank of Cyprus stood as a colossus over commerce and the community, celebrating 50 years of service and growth. This time period foreshadowed the expansion of operations but also the expansion of premises across the island.
1951
In 1951, the Bank of Cyprus and the Mortgage Bank of Cyprus co-created the General Insurance of Cyprus, the island’s first insurance company. This was done despite difficulties as the law at the time prohibited the establishment of insurance firms. It was a milestone event.
The General Insurance of Cyprus was located in the capital Nicosia, next to the headquarters in Faneromeni. The building itself was innovative as it had central heating – a luxury unheard of at the time – providing a comfortable environment for staff during winter.
Meanwhile the bank’s human capital had grown to 140 employees, a diverse and dedicated workforce. At the general meeting of shareholders in March 1951 chairman Demosthenis Severis reminisced about the Bank’s humble origins, a bank established with the limited contributions of the working class, men and women, whose weekly shillings sowed the seeds of this institution.
1960
The 1960s began with the world on the verge of a monumental change. In the United States the election of John Kennedy to the presidency heralded a new era in American policy. Meanwhile, the upcoming voyage to the moon by astronaut Yuri Gagarin promised to redefine humanity’s position in the universe.
Closer to home, the Republic of Cyprus emerged following the liberation struggle of 1955-1959. The new republic was ready to forge a path as an independent state. Amid these global and local developments, the Bank of Cyprus became a robust pillar in a rapidly evolving landscape.
1967
In 1967, in a bold move adopting technology the Bank of Cyprus unveiled ‘Evlambios’ – the first ever computer on the island. This trailblazing step in automation and data processing marked an important leap forward.
‘Evlambios’ was used not just by the Bank but also inspired other organisations to adopt the technology, in this way revolutionising how businesses operated.
The 1970s were a time of strategic reorganisation and expansion for the Bank of Cyprus Group, with the creation of Bank of Cyprus-Investments. The move paved the way for an expansion into new areas beyond traditional banking operations.
1973
The year saw the establishment of the Mobile Bank – a roving bus capable of providing banking services to all villages on the island. Next came the first three ATM machines in Nicosia, and the inauguration of the first drive-through branch in Limassol. These moves revolutionised customer service, setting a new standard in speed and efficiency.
1974
Nevertheless, the 1970s were marred by adversity. The tragic events of 1974 forced Cyprus and its people to deal with unparalleled challenges. In these difficult times, the Bank of Cyprus rose to the occasion with remarkable compassion and solidarity. The £50,000 donation to the Relief Fund for the victims of the Turkish invasion, the writing off of debts, and the withdrawal of lawsuits against clients were only some ways in which the Bank supported those affected by the conflict and its aftermath.
Other initiatives, such as ‘adopting’ a primary school for refugees in Paphos, or financially supporting children’s clubs in refugee camps, underscored the Bank’s deep commitment to helping the community.
Despite the loss of branches and cash in the occupied areas, the Bank of Cyprus made a conscious decision to prioritise its staff and customers over financial recovery. It refused to state that the crisis had affected it and then use that as an excuse to dock salaries. The decision stood as proof of the Bank’s unwavering commitment to its fundamental principle – the ‘Koino Kyprion’.
1980-1999
The early 1980s saw the launch of ‘plastic money’, with the CYCARD debit card making its first appearance.
Then in 1984 the Bank of Cyprus Cultural Foundation was established, an extremely important milestone in the Bank’s history. Today, 40 years later, the foundation aims to preserve and propagate the island’s culture.
By the mid-1980s the Bank had expanded its operations to the United Kingdom and Greece. At around the same timeframe the CYTEL service was set up, a precursor to the 1bank service of today.
1989 witnessed the further expansion of services with the establishment of Eurolife, intended to become a leader in the life insurance business, which it did a few years later.
1998
The crowning achievement of the Bank’s community outreach in the 1990s lay in the establishment of the Bank of Cyprus Oncology Centre (1998) thanks to a £3 million donation from the Bank of Cyprus. It is perhaps the biggest contribution to society made by any organisation. It is also proof of the commitment to social responsibility, having to date provided vital healthcare services to over 47,000 patients.
2000-2024
In the year 2000, Bank of Cyprus’ shares were listed on the Athens Stock Exchange, heralding a new era of growth. At the same time, the Bank embraced the digital age by launching the Digipass, offering security for online transactions.
In 2004 Cyprus acceded to the European Union, adopting the euro four years later. In that same year, 2008, the Bank of Cyprus rolled out its Mobile App, offering smart solutions for day-to-day banking transactions.
2013
In the aftermath of growth during the first decade of the new millennium, the Bank of Cyprus got caught up in the maelstrom of the financial crisis that erupted in 2013.
During this time the Bank faced unprecedented challenges – the bailout of the Cypriot state, austerity and the infamous bail-in.
It was a time for introspection, reevaluation and substantive changes and reorganisation. Within the space of just four years, the Bank managed to pay back the €9 billion in Emergency Liquidity Assistance it had been saddled with. Ratings agencies at the time called it a genuine “economic feat”.
A little later, in 2015, the Bank founded the IDEA Innovation Centre – the largest non-profit incubator for startups, which has since become a business hub for up-and-coming Cypriot entrepreneurs.
2017
The significant progress made, including the ongoing reduction in non-performing loans for 11 successive quarters, paved the way for the successful listing of the Bank’s shares on the London Stock Exchange in January 2017.
2020
The year saw the outbreak of the coronavirus pandemic. Offering tangible help to the community, in March 2020 the Bank of Cyprus created the SupportCY network, providing assistance to professionals on the frontline. The network currently has 190 members, and continues to offer assistance and support to the community. It’s also creating its own Volunteers Corps that responds to calls for assistance from state agencies during crises and disasters.
In the years that followed, the digital landscape underwent rapid change, with the Bank of Cyprus investing heavily in digital innovation in a bid to make life easier for all of us.
2024
Lying at the core of this digital revolution is Quick Hub, a cutting-edge digital store installed on smart phones. It offers funds transfers – the popular QuickPay – opening of accounts, payments and even insuring assets. The inclusion of QuickLoans, in 2023, took this digital store to the next level. Now, applying for and getting a loan can be done electronically, without the need to visit a physical branch. It’s fast, it’s easy.
Meanwhile the Jinius platform was created, connecting businesses, organisations, suppliers and customers in a single digital space. The platform makes day-to-day transactions quick and efficient. More recently, Jinius created a modern and dynamic marketplace where retailers can expand and boost their online presence.
The Bank of Cyprus’ journey of digital transformation focuses on providing customers with better service. It aims to make banking accessible to all.
One would be remiss not to mention the granting of substantial dividends to shareholders – five times as many dividends given as in 2023.
From crisis to recovery and to new beginnings, the Bank has remained steady throughout – proving that adversity is but an opportunity for rebirth and transformation.
As we wade into the uncharted waters of the future, let us carry with us the lessons of the past as well as the innovations of the present and the dreams of tomorrow.
On this thousand-mile journey that begins with the first step, let us take this step with self-confidence, hope and the conviction that the best is yet to come.