The BOC Group’s performance is highly correlated to the Cypriot economy. Local operations accounted for 91.4% of gross loans and 90.3% of customer deposits as at 30 June 2016. The country’s improving economic conditions, should have direct benefits for the Bank’s profitability. Growth in new lending, through either organic growth or targeted acquisitions, is focused on the consumer, SME and corporate sectors. Growth in certain areas of the Cypriot economy is believed to directly complement the Bank’s target risk profile, such as tourism, trade, professional services, information/communication technologies, energy, education and green projects.
The Bank is reducing its risk profile by disposing of non-core assets, while enhancing its liquidity and capital positions as well as focusing on diversifying its income streams by increasing fee income from international businesses (including international transaction services), increasing deposits, wealth management and insurance.
Develop the UK Franchise
The BOC Group also has targeted certain BOC UK activities and its UK customer base as the subject of a focused growth initiative. Alongside focusing on the BOC Group’s UK operation’s core strength in property (and specifically the professional buy-to-let market), the BOC Group also has a clear diversification and expansion strategy, including adding a consumer division (mortgages, savings and current accounts) and a business division (trade-related products for professionals, SMEs and Cypriot residents).