Panayiotis Rougalas
The process for the sale of JCC Payment Systems has been halted, bringing an end to the deal between JCC and Euronet that had been under consideration since the summer of 2024. According to the 2024 financial results of Bank of Cyprus, "following a strategic review, the Board has concluded that there is greater value for stakeholders through retaining JCC as part of the Group." The bank also emphasized that "a clear strategy was set out to enhance JCC's growth and performance" during the review.
This statement clarifies that, rather than selling JCC, Bank of Cyprus plans to invest in strengthening the payment systems company.
In late October, Bank of Cyprus noted a "stumbling block" in the sale process between JCC and its main competitor, Euronet. However, the group's nine-month financial results presented an opposite outlook, stating, "The Group is undertaking a strategic review which may lead to a potential sale of some or all of its stake in JCC, although no decision has been made at that stage."
For the year ending December 31, 2024, the bank reported net fee and commission income of EUR 177 million, a 2% decrease year-on-year, primarily due to lower fees from transactional work. However, JCC, which is 75% owned by the Bank of Cyprus and a leader in card processing and payment systems in Cyprus, helped boost this figure. Net fee and commission income from JCC for the year was EUR 28 million, representing 10% of the group’s non-interest income, though it declined 4% from the previous year, largely due to higher fees charged by third-party providers.
In addition to Bank of Cyprus, JCC's shareholders include a consortium of Cypriot banks, such as Hellenic Bank, National Bank of Greece (Cyprus), AstroBank, and Alpha Bank (Cyprus). Founded in 1989 by Cyprus's two largest banks, JCC was established to manage the processing and settlement of card transactions. It acts as a card acquirer and processor for VISA and MasterCard, and processes cards on behalf of American Express and Diners Club.
For the year ending December 31, 2024, the Bank of Cyprus reported non-interest income of EUR 272 million, down 9% from EUR 300 million in 2023. This income includes EUR 177 million from net fee and commission income, EUR 36 million from net gains on foreign exchange trading and financial instruments, EUR 46 million from insurance operations, EUR 1 million from net losses on investment properties, and EUR 14 million from other sources. The decline was mainly attributed to lower results from insurance operations and a loss on the revaluation and sale of investment properties. Despite the drop, non-interest income continues to be a vital contributor to the bank's profitability, covering nearly 75% of its total operating expenses.
*This article was translated and summarized from its Greek original
