Astrobank’s CDB takeover collapses

AstroBank announced that negotiations to take over the Cyprus Development Bank (CDB) have fallen through.

The island’s fourth-largest lender had set out earlier in September to acquire CDB in a bid to boost its non-organic growth.

In a statement on Tuesday, following an announcement dated September 11, 2023, regarding a possible acquisition of CDB, AstroBank said that no agreement has been reached between the two parties.

“AstroBank remains committed to its business plan, which over the past three years has led to significant operational improvements, quality customer service, and improved profitability,” reads the bank’s announcement.

“AstroBank will continue to be on the lookout for non-organic growth opportunities,” it added.

AstroBank posted profits for a second year in May, encouraging management to make its presence felt in the financial sector.

For 2022, AstroBank posted a net income of EUR 12.2 mln compared to EUR 3.3 mln in 2021 and losses of EUR 18.1 mln the year before.

Earlier in June, AstroBank had completed its staff restructuring plan after the second phase of a voluntary exit scheme, reducing the number of employees at the bank to the targeted 400. In its 2022 financial report, CDB Bank reported assets of EUR 0.55 bln, corresponding to approximately 21% of Astrobank’s total assets, which stood at EUR 2.73 bln by the end of the year.

CDB Bank’s total gross loans reached EUR 250 mln, while their deposits amounted to EUR 487 mln, with an additional EUR 220 mln deposited with the Central Bank.