REG - Bank of Cyprus Hldgs - Completion of Voluntary Staff Exit Plan

Bank of Cyprus HoldingsAnnouncement

25/07/2022 07:16

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RNS Number : 5776T  Bank of Cyprus Holdings PLC  25 July 2022

Announcement

 

Completion of Voluntary Staff Exit Plan

 

Nicosia, 25 July 2022

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014.

 

 

Bank of Cyprus Holdings Public Limited Company ("BOC Holdings" and, together
with its subsidiaries, the "Group") announces the successful completion of a
voluntary staff exit plan (the "Plan").

The Plan is in line with the Group's strategy of further improving efficiency
through branch rationalisation and workforce streamlining.

Through the Plan, c.550 applicants have been approved to leave at a total cost
of c.€99 mn, expected to be recorded in the consolidated income statement in
the third quarter. Following the completion of this Plan, the number of
employees is reduced by c.16%(1), with an estimated annual saving of c.€37mn
or c.19% of staff costs(1).

In addition, the Group has reduced its number of branches by 20 year-to-date
to 60, a reduction of 25%.

Through these two successful initiatives, the Group has delivered ahead of
schedule on its commitment to reduce its workforce by 15% and its number of
branches by 25% by the end of 2022.

Including this latest reduction, the Group has reduced the number of employees
by more than 1,300 since June 2019, a reduction of c.30%, and the size of its
branch network by 37 branches, a reduction of c.40%.

 

Panicos Nicolaou, Chief Executive Officer of Bank of Cyprus Holdings,
commented:

"The successful completion of this latest voluntary exit plan, means that we
are achieving ahead of schedule our objective of right-sizing the Bank, which
is key for the improvement of our operating efficiency, the sustainability of
our business model and the achievement of our medium-term targets."

For further information, please contact Investor Relations at
investors@bankofcyprus.com (mailto:investors@bankofcyprus.com) .

 

1.     Based on the Group financial results for the quarter ended 31 March
2022.

 

 

Group Profile

 

The Bank of Cyprus Group is the leading banking and financial services group
in Cyprus, providing a wide range of financial products and services which
include retail and commercial banking, finance, factoring, investment banking,
brokerage, fund management, private banking, life and general insurance. At 31
March 2022, the Bank of Cyprus Group operated through a total of 86 branches
in Cyprus, of which 11 operated as cash offices. At 31 March 2022, the Group's
Total Assets amounted to €25.1 bn and Total Equity was €2.1 bn. The Bank
of Cyprus Group employed 3,395* staff worldwide. The Bank of Cyprus Group
comprises Bank of Cyprus Holdings Public Limited Company, its subsidiary Bank
of Cyprus Public Company Limited and its subsidiaries.

 

*The Bank of Cyprus Group employed 3,395 staff worldwide as at 31 March 2022.
The number of staff has been reduced by c.550 employees following the
completion of a voluntary staff exit plan in July 2022.

 

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