Further to this news, Bank of Cyprus Australia is also pleased to announce record-breaking results for 2011. The significant features of the 2011 results show an increase in customer account numbers by 21 per cent. Mr George Tacticos, Managing Director Bank of Cyprus Australia said “Given the difficult economic environment experienced internationally and even domestically, this is sound achievement and one we are most proud of. This reflects our relationship-based banking that is an attractive component of our business model.”

Other key features of the 2011 results include a 15 percent increase in deposits and a net profit after tax up 27 per cent. The 2011 results confirm the sentiment that Bank of Cyprus Australia is a strong, successful and viable bank.

Such significant achievements give reassurance to Bank of Cyprus Australia Limited customers and staff alike that the Bank is ready to propel itself into a new era of strong growth with Australian parent Bendigo and Adelaide Bank Limited. Under the direct leadership of Mr Tacticos, who was at the forefront of this deal, Bank of Cyprus Australia Limited will follow its community-based banking specifically directed towards the Hellenic-Australian population.

“Like us, Bendigo and Adelaide Bank’s staff and vision is driven by how its business can ensure prosperity for all its key stakeholders and inturn strengthen the community. We are proud of this new affiliation, as we both recognise outstanding customer service and a connection to the community beyond just banking, as the fundamental building blocks of our success. We are here to support the community just as it supports us.”

Mr Tacticos continued “It is business as usual for all our 14 branches. Our customers will continue to deal with our people and our branches across Australia. The transition for everyone involved is minimal – we have always been an Australian bank and now we report to an Australian parent.”

In addition to Bendigo and Adelaide Bank Limited sharing the same principles, the financial future for Bank of Cyprus Australia Limited is now secured. Bendigo and Adelaide Bank Limited is a publicly listed company which is owned by more than 82,000 shareholders, with a market capitalisation in excess of 3.5 billion and $55 billion in assets.

Bendigo and Adelaide Bank, Managing Director, Mr Mike Hirst, said he sees good growth opportunities for the Bank.

“A good opportunity lies ahead for the Bank of Cyprus Australia, initially by giving customers access to Bendigo’s broad product offering, but also by supporting the businesses’ growth in a manner that is not constrained by funding or capital,” said Mr Hirst.

Mr Tacticos said “This phase is committed to providing the same level of support to the community through our devised financial services and through our proudly hospitable level of service. Our values remain the same and our doors are always open to all our customers and the community. We extend an open invitation to all.”

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BOCAL is a bank focused on the Greek and Cypriot communities through a network of 14 branches based in New South Wales, Victoria and South Australia with interest bearing assets of A$1.4 billion. BOCAL is the largest Hellenic bank in Australia with a strong track record of growth driven by successful community engagement and customer satisfaction.

Bendigo and Adelaide Bank Chairman, Robert Johanson, said the purchase of BOCAL provided a strategically complementary addition to the broader BEN network.

“The business aligns closely with the cultural and strategic values of BEN, and its performance is a reflection of high customer advocacy and an excellent track record of direct community engagement,” Mr Johanson said.

Bendigo and Adelaide Bank Group Managing Director, Mike Hirst, said there were good growth opportunities for the business through access to BEN’s broader product offering, further targeted branch expansion, and the removal of growth constraints currently being imposed on the business.

“BOCAL is an attractive business with a strong capital and liquidity position,” Mr Hirst said.

“It is predominantly funded by retail deposits, maintains a conservative risk profile with 99pc of the loan book secured against property, and has an excellent credit history. BEN is confident that there is significant scope to improve the earnings of the business through funding and operational synergies.”

Equity raising
BEN is undertaking a fully underwritten A$120m share placement to selected institutional investors at a price of A$8.45 per share. In addition, retail shareholders will have the opportunity to participate in a non-underwritten share purchase plan (SPP) early in 2012. The proceeds from the capital raising will support the acquisition funding.

“The proceeds of the raising will strengthen BEN’s capital base and provide us with flexibility to grow, particularly with the benefit of our improved credit rating,” Mr Hirst said in reference to S&P’s upgrade of BEN’s long-term credit rating from BBB+ to A- on 6 December 2011. Now all global credit rating agencies have assigned BEN with a long term issuer rating of at least an equivalent ‘A-‘ rating.

Trading in BEN shares on the ASX will be halted for one day while the share placement is being undertaken. Trading is expected to recommence on Monday, 19 December 2011 following the announcement of the outcome of the share placement. The placement shares will rank equally with all existing fully paid ordinary shares in the capital of BEN.

Following the institutional placement, BEN will offer eligible shareholders the opportunity to participate in a non-underwritten SPP. The SPP will provide eligible ordinary shareholders (being those persons registered as ordinary shareholders as at 7pm (EDST) on 15 December 2011 who reside in Australia or New Zealand) with the opportunity to subscribe for new BEN ordinary shares. Further details of the SPP will be provided to eligible shareholders in due course.

If the acquisition of BOCAL does not proceed, the proceeds from the equity raising will be used to strengthen BEN’s capital base, and provide it with increased flexibility for future growth.

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