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Two Cypriot investors behind a successful global trading platform are making a bold move to take over Ancoria Bank, in what could signal a new era for small-scale banking in Cyprus.
According to Kathimerini's Panayiotis Rougalas, Costas Kleanthous and Charalambos Panagiotou, local shareholders in the fintech firm XM, have filed an official request with the Central Bank of Cyprus to acquire nearly 80% of Ancoria Bank, a relatively small but financially healthy institution. If approved, the deal would give Kleanthous a controlling stake of 50-60%, with Panagiotou holding about 20%. Current majority shareholder Sievert Larsson would retain a smaller stake of roughly 20%.
The request, submitted on July 18, has been months in the making. Regulatory approval is now in the hands of both the Central Bank of Cyprus and the European Central Bank (ECB), which will conduct a stringent “fit and proper” review of the potential buyers. A decision is not expected before September.
While XM is licensed and supervised by Cyprus’ financial watchdog (CySEC), the ECB has the final say when it comes to majority acquisitions in any EU bank, even smaller ones like Ancoria. EU rules have grown tougher in recent years, aiming to tighten oversight and strengthen corporate governance across the board.
New strategy on the table
What’s at stake isn’t just ownership; it’s the direction of the bank. The two investors are pitching a new business plan that focuses on revamping Ancoria into a more modern institution while staying grounded in serving the local economy. The strategy puts small and medium-sized businesses at the center, aiming to offer more accessible and tailored services for both entrepreneurs and regular consumers.
Sources close to the investors say the goal is to build a "bank of the future" rooted in Cyprus’ business backbone. While Ancoria may not be a banking giant, the move raises eyebrows, especially given that XM reportedly pulls in far greater profits than Ancoria, which posted €7.9 million in after-tax profits last year.
Strong but modest performance
Despite its small size, Ancoria Bank has been financially stable in recent years. It ended 2024 with €742.6 million in customer deposits and maintained a solid capital ratio of 25.21%. The bank’s non-performing loans (NPLs) remain impressively low, just 1.9% in 2024, a far cry from the troubled legacy of Cyprus’ financial sector following the 2013 crisis.
Still, the acquisition raises a big question: Why would two investors with a highly profitable fintech business want to run a modest bank? That answer may lie in their ambition to modernize Cyprus’ banking map and possibly set a new standard for how local banks serve people and businesses alike.
For now, it’s a waiting game. Regulators must comb through the multi-page file and decide whether the vision laid out by Kleanthous and Panagiotou meets the bar. If it does, Ancoria Bank could become a test case for a new kind of banking in Cyprus, one that blends tech-savvy ambition with grassroots service.
