Bank of Cyprus cautiously continues path towards London after Brexit

Α Decrease font Enlarge font
Bank of Cyprus cautiously continues path towards London after BrexitThe Bank of Cyprus continues to have plans to enlist itself on the London Stock Exchange (LSE) even amid the growing worries of the Brexit, the CEO John Patrick Hourican revealed to SigmaLive in an exclusive interview.

The Bank of Cyprus continues to have plans to enlist itself on the London Stock Exchange (LSE) even amid the growing worries of the Brexit, the CEO John Patrick Hourican revealed to SigmaLive in an exclusive interview. 

Downgrades have abounded from ratings agencies with Standard & Poor’s and Fitch Ratings both announcing that the UK’s economy would be rated as ‘double A’ instead of the ‘triple A’ or ‘AA+’ rating it had pre-Brexit.

Fallout on a political level has also been immediate, with EU leaders calling for a quick ‘divorce’ from the UK at an unofficial summit held earlier in the week. 

However, Hourican suggests that despite the uncertainty of a post-Brexit Europe, London will continue to remain an important financial centre in global terms. “Look at the world and see how the large amounts of money invested in pensions is managed: it’s invested in New York, Frankfurt, Amsterdam, and London...

London will remain a very big, very important, financial centre for the world,” Hourican explains.

Exemplary global city

In a report in 2013, the Brookings Institution think-tank, had said about the UK, “The capital of the United Kingdom and one of the four largest metropolitan areas in Europe, London has become an exemplary global city over the past two decades.

The city rates second for global firm presence, just behind New York, and it ranks third in information/communications technology development among large world cities, enabling near-seamless communication.”

Hourican, in the meantime, has had a different outlook on the UK’s economy on the growing fears that led to a FTSE fall, after the Brexit.  He has said, “And while this will change somewhat with Brexit, it won’t change to the extent that London will no longer be a centre for managing large amounts. The skills are there, the infrastructure is there, the money is already there, the history is there, the connections are there, and now they just need to find a better equilibrium to deal with the changes.”

Despite Hourican's assertions that London will continue to be a global financial capital, he cautions that change is always disquieting, and should be carefully monitored: “We should all worry when there is change around us; when you have change in the geopolitics or geoeconomics you have to watch carefully and know what’s going on.”

BoC still seeking its listing on the LSE

Even with the Brexit, the Bank of Cyprus is still looking to join the London Stock Exchange, Hourican had mentioned. 

He said, “The Bank hasn’t changed it plans to list in the LSE.”

Hourican did add however that with the Brexit the bank would be closely monitoring the situation, and would take its time in considering when the process to list itself on the LSE would happen.  

In early April, the BoC had said in an official announcement: “A premium listing on the LSE fulfills one of the Bank’s objectives of listing on a major European stock exchange. The listing and, subject to meeting the eligibility criteria, potential inclusion in the FTSE UK Index series will enhance the Group’s visibility and share liquidity.”

However, with the Brexit, Hourican mentioned that the bank would need time to reflect and make sure that the choice of London, over other options, is still the right choice. 

He said they will “Enlist on the LSE with a premium listing and at a time that is sensible for the bank.”

Business as usual

More specifically on what the bank foresees following the Brexit, Hourican made reference to the bank running “business as usual.”

He said that they continue to plan to grow their niche business with the BoC UK, as there are significant growth opportunities. 

With the Bank of Cyprus on the island, Hourican explained that they will continue to follow what the Cypriot economy does, as their job is to support the economy.

Hourican has also said that the plan to enlist with the LSE will not be complicated following the Brexit, which had sparked concerns that new trade agreements would need to be made. 

The EU, which allows members to benefit from a free-trade area, would have to negotiate new deals with the UK following the Brexit, officials had previously said. 

“First you exit then you negotiate,” Cecilia Malmstrom, the EU Trade Commissioner has said following the referendum result.

A “third country”

After Brexit, the UK would become a “third country” in EU terms, she said - meaning trade would be carried out based on World Trade Organisation rules until a new deal was complete.

A recent trade deal with Canada took seven years to negotiate with the EU leaders.  Malmstrom added that another one to two years are needed to have all the EU member states pass the agreeement.

In terms of the Bank of Cyprus though, Hourican said that there is no such complication in enlisting with the LSE.

He said that the holding company, which will own the BoC UK and the BoC, is planned to be listed on the LSE and designed to access investor capital and find stability for their stocks.  

Whether you discover that in New York, Singapore, London, or Amsterdam is a matter of choice for the management, and where they believe the best conditions for its investors are, which is a decision we will make at the time,” Hourican said. 

Pound’s decline and the Bank of Cyprus

However, following the sharp decline in the worth of the pound following the Brexit, Hourican was clear that lending opportunities to UK borrowers would need to be closely looked into. 

On the day after the referendum in the UK, the pound fell to its lowest level since 1985. 

Leave's victory has delivered one of the biggest market shocks of all time. The pound has collapsed to its lowest level in over 30 years, suffering its biggest one-day fall in living memory.  It's fair to say we've never seen anything like it and the chances are markets will remain highly volatile over the coming hours and days,”  said Joe Rundle, head of trading at ETX Capital, a UK based financial company, on the day following the Brexit.

Hourican mentioned that due to the decline in the sterling, they would need to make sure that a person whose earnings are in pounds is more of a risk. 

We will need to make sure that they will be able to pay us in euros if they borrow in euros.  Our job is to support businesses in Cyprus, and therefore the Cypriot economy, which is currently doing very well today,” he said. 

Furthermore, on the pound’s decline, Hourican has mentioned that Cyprus needs to be mindful of the effects on its own market. 

“The Eurozone becomes a less attractive place for sterling tourists,” he said, adding that the island would become more expensive for them

To combat the Brexit’s effect on the markets in Cyprus, Hourican has suggested: “We have to plan for alternative tourists to come here, and we have to make sure that our exports from here to the UK are either more competitive, or we find new markets.  So we have to get proactive in every sector, every company, in every line of business to try and find the advantage from the dislocation that is happening in Britain.”

Part two of Hourican's interview on foreclosures, NPLs, and ELA will be on SigmaLive on Sunday.

Read more here.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

 

 

 

 

Tornos
  1. 28/03 18:41

    Attica Region to channel 640 bln euros to services of vulnerable and disadvantaged groups

  2. 28/03 17:32

    Greece to auction three-month T-bills on April 3, 2024 in a book entry form

  3. 28/03 15:46

    Greece's Meteora Pyli Geopark added to UNESCO Global Geoparks network

  4. 28/03 14:44

    IPTO announces framework agreement tender for undersea power cables in Greece

  5. 28/03 11:49

    IOBE: Construction sector in Greece records robust growth and good prospects

  6. 26/03 23:51

    St. Thomas Hellenic School honors 1821 and the Feast of the Annunciation in NJ

  7. 26/03 21:59

    PM at Economic Club of Canada: Greece is an attractive investment destination

  8. 26/03 17:56

    Greek State budget primary balance reaches a surplus of 3,378 million euros

  9. 26/03 11:45

    Ancient Messene to get upgraded visitors' facilities after approval by Council

  10. 23/03 17:43

    New requirements for 'Golden Visa' program to kick in on March 31

  11. 23/03 16:49

    Athenians continue to head out of the Greek Capital for March 25 long weekend

  12. 23/03 16:47

    Greek Parliament lights to be turned off for Earth Hour 8:30-9:30 pm

  13. 22/03 21:54

    US President on Greek Independence Day: Alliance with Greece stronger than ever

  14. 22/03 19:51

    High diplomacy and geopolitics at Delphi Economic Forum IX in Greece

  15. 22/03 19:32

    Tax authorities enable payments with foreign bank cards in Greece

  16. 22/03 14:19

    Greece to take part in Earth Hour on Saturday

  17. 22/03 00:24

    Greece ranks first on list of countries with fastest business environment progress

  18. 22/03 00:02

    Hellenic Police acquires first electric VAN-type highway patrol vehicle

  19. 21/03 22:41

    Greek Finance Ministry tightens Golden Visa rules

  20. 21/03 15:33

    Unseen Museum presents "The stele of the twin babies" exhibition in Athens

  21. 20/03 22:48

    Health Minister: 95% of Greek hospitals to perform afternoon surgeries

  22. 20/03 21:52

    Greek Deputy Minister of Justice meets delegation from US Embassy in Athens

  23. 20/03 21:44

    Greek Interior Minister to visit United States and Canada on postal vote

  24. 20/03 20:55

    Philadelphia Icarians mark 85th Anniversary and organize Apokriatiko Dance

  25. 20/03 18:01

    Development Minister: We continue the battle against high prices in Greece

  26. 19/03 22:28

    President of the Hellenic Republic meets her Ethiopian counterpart in Athens

  27. 19/03 20:57

    Greek Tourism Minιster meets Hellenic Chamber of Hotels

  28. 19/03 20:25

    FinMIn: Moody’s analysis records significant progress in the Greek economy

  29. 19/03 11:15

    Sector chiefs report: Good news for Greek tourism in 2024 at ITB Berlin

  30. 18/03 22:20

    American Hellenic Educational Progressive Association honors Past Supreme President

  31. 16/03 13:01

    Greek Deputy Foreign Μinister meets her Slovenian counterpart in Athens

  32. 16/03 12:56

    Greek-Canadian Diaspora to welcome Greek Prime Minister to Toronto

  33. 16/03 11:28

    Greek Migration Minister visits refugee hosting facilities in Kavala, Drama and Serres

  34. 15/03 21:50

    Greek Minister announces conference on defence ecosystem in Athens from Lithuania

  35. 15/03 13:45

    PM: More than 80 hospitals and 156 health centres being upgraded in Greece

  36. 15/03 12:55

    Piraeus Port and Genoa Chambers of Commerce ink memorandum of cooperation

  37. 14/03 23:43

    President of Hellenic Republic meets Prime Minister of Slovakia in Bratislava

  38. 14/03 22:58

    American Express report highlights Global Travel Trends during 2024

  39. 14/03 22:52

    Four hospitals in Attica Region already organizing afternoon surgical procedures

  40. 14/03 22:49

    US Ambassador to Athens: More flights from the United States to Greece and Thessaloniki

  41. 14/03 22:43

    Greek archaeologists discover ten ancient shipwrecks off Aegean island of Kasos

  42. 14/03 19:32

    No new intubations for Covid-19 recorded in Greece for the first time

  43. 14/03 18:36

    Extra road safety measures adopted for Greek pre-lent carnival and Clean Monday

  44. 14/03 14:48

    HRADF eyes bidders for Lavrio Port majority share

  45. 14/03 12:54

    Electric buses to be deployed on the streets of Athens and Thessaloniki by May

  46. 13/03 22:23

    Chairman: 2023 was an exceptional one for AEGEAN Airlines

  47. 13/03 20:11

    Prices of basic lenten products either lower or equal to last year's in Greece

  48. 13/03 19:15

    US Ambassador to Athens: Greece secures NATO readiness via Alexandroupolis

  49. 13/03 17:19

    Greece shines at 1st European Cruise Exhibition

  50. 13/03 12:26

    Greece shows new costumes for revamped Olympic Flame-lighting ceremony

  51. 12/03 22:46

    Epirotes Society of Philadelphia ‘Omonia’ organized 16th Annual ‘Tsipourovradia’

  52. 12/03 21:38

    The President of the Hellenic Republic to visit Slovakia on March 13-15

  53. 12/03 20:29

    First afternoon surgeries in Greece kick off at Papageorgiou Hospital in Thessaloniki

  54. 11/03 23:58

    Greek Foreign Minister: We stand behind Montenegro's European perspective

  55. 11/03 23:47

    Visa Express for Turkish citizens to commence on five Greek islands in March

  56. 11/03 19:40

    Amadeus acquires travel payments expert Voxel

  57. 11/03 18:49

    Microsoft Data Center construction kicks off in Spata next to Athens Airport

  58. 11/03 17:53

    Dodecanese Federation marked 76th Anniversary of Unification with Greece

  59. 09/03 22:23

    The future of travel planning is multimodal and interactive

  60. 08/03 14:27

    Prime Minister: Radical change in Greek education and a brave reform for growth

  61. 08/03 14:24

    Traffic restrictions expected in Athens mid-morning to evening on Friday due to protests

  62. 08/03 14:24

    Applications to out-of-court settlement more than doubled in Greece in February

  63. 08/03 13:18

    Metro station 'Maniatika' near Piraeus Port to be closed on Saturday and Sunday

  64. 07/03 14:12

    Athens wins World Travel Award 2024 as the top city-break destination in Europe

  65. 06/03 22:51

    WTTC data show Greece and Portugal lead league for growth in tourist arrivals

  66. 06/03 20:28

    Greek Tourism Minister at ITB: 2024 will be another excellent year for sector

  67. 06/03 19:47

    Greek Foreign Minister to meet UAE Minister of Industry and Technology on Friday

  68. 06/03 18:43

    European Union actions of 274m euros to support cultural heritage in Greece

  69. 06/03 16:37

    'Odontotos' rack railway temporarily stopped until landslides issue is resolved

  70. 06/03 14:40

    Minister: Bringing about the return of Greeks abroad 'a moral duty'

  71. 05/03 14:28

    Archdiocese of America Eparchial Synod to meet on March 14-17 in Florida

  72. 05/03 14:21

    The 'Lent Basket' to be launched in Greece on March 13

  73. 05/03 14:11

    ITB BERLIN 2024 opens with excellent bookings after global rise in travel in 2023

  74. 05/03 12:24

    Greek PM at Athens supermarket: Consumers 'can already see lower prices on the shelf'

  75. 04/03 22:02

    Greek Health Minister: Afternoon surgeries at state hospitals to begin shortly

  76. 04/03 21:47

    Holy Cross Greek Orthodox Whitestone Community marks 49th Anniversary

  77. 04/03 20:27

    Labor chief: Greece to train 500,000 workers in digital, green skills by 2025

  78. 04/03 19:44

    Foreign Ministry to organize event on 'Women, Peace, and Security' on Friday

  79. 04/03 15:12

    Athens Riviera | The summer experience with Athens as a background

  80. 29/02 22:54

    Consumers to see price cuts up to 18.1% in 3,000 Greek supermarket products as of Friday

  81. 29/02 21:44

    Greece and Germany set up Working Group on shipping cooperation

  82. 29/02 21:30

    Wyndham Rewards’ Member Month offers 5 weeks of deals, discounts, and bonus points

  83. 29/02 21:03

    Temple of Poseidon at Sounion near Athens to get new lighting system

  84. 29/02 21:02

    Greek Tourism Minister meets with Ambassador of Qatar

  85. 29/02 20:47

    Greece is represented by 60 firms at GULFOOD 2024 exhibition

  86. 29/02 19:58

    Greek government gives 1+1 month extension for cash register-integrated POS terminals

  87. 29/02 19:49

    Archangel Michael Church Dance Program shines at Folk Dance Festival in SF

  88. 29/02 15:39

    'Renovate-rent' programme to be launched, Minister tells Greek Parliament

  89. 29/02 12:39

    Rio-Antirrio ferry line in central Greece closed due to strong winds

  90. 28/02 21:34

    Weather with heavy rain and storms in Greece as of Sunday night

  91. 28/02 17:31

    CEO: The goal is for PPC to become a leading player in Southeast Europe

  92. 28/02 17:04

    New Wyndham Hotels Market Managing Director of Central and Eastern Europe

  93. 28/02 12:21

    Minister: Transactions with the Greek State will be further simplified in 2024

  94. 28/02 11:57

    24-hour strikes halt trains and ferries in Greece

  95. 27/02 17:25

    UN Tourism hails Saudi Arabia's historic milestone of 100 million tourists

  96. 27/02 15:00

    Greek Prime Minister: Relations with Armenia can become even more productive

  97. 27/02 14:26

    Wyndham: New growth cycle in Greece for the largest hotel chain franchise in the world

  98. 27/02 13:15

    Price cuts of up to 15% in important product categories in Greece after March 1

  99. 27/02 12:46

    Athens taxi drivers' protest rally in progress from Athinon avenue to Messogion

  100. 26/02 18:30

    Annual Summit of Women Political Leaders (WPL) to be held in Athens in April