Cypriot businessmen Costas Cleanthous and Charalambos Panayiotou, shareholders of fintech trading platform XM, have applied to the Central Bank of Cyprus (CBC) to acquire a majority stake in Ancoria Bank, according to Kathimerini.

Although both men are deeply involved in XM, the online trading company is not connected to the bank acquisition in any capacity.  

The move, filed on July 18, seeks to increase their combined stake in Ancoria from under 9.9 per cent to nearly 80 per cent.  

If approved, Cleanthous is expected to hold between 50 and 60 per cent of the bank, with Panayiotou taking around 20 per cent.  

Ancoria’s current majority shareholder, Sievert Larsson, would see his stake reduced to about 20 per cent. 

The submission, which had been in preparation since April, will be assessed by both domestic supervisors and the European Central Bank (ECB).  

While the CBC will provide its opinion, the final decision rests with Frankfurt under EU rules for significant changes in bank ownership. 

The two prospective owners will undergo the ECB’s fit and proper assessment, a rigorous suitability test for major shareholders.  

Although XM is already licensed by Cyprus’ securities regulator CySEC, the ECB’s criteria for banks have tightened in recent years to reinforce governance standards across the sector. 

Alongside the acquisition request, the investors have proposed a new business strategy for Ancoria Bank, focusing on support for small and medium-sized enterprises (SMEs) and individual consumers.  

Their vision aims to blend modern banking practices with a traditional approach to serving Cyprus’ business backbone. 

Ancoria’s performance in recent years has reflected the broader profitability surge across Cyprus’ banking sector.  

The bank posted net profits of €7.9 million in 2024, slightly below the €8.3 million recorded in 2023 but well ahead of earlier years.  

Customer deposits climbed to €742.6 million in 2024, from €672 million a year earlier, while gross loans remained stable at around €317 million. 

The lender’s capital adequacy ratio stood at 25.2 per cent in 2024, up from 23 per cent in 2023, and its non-performing loans ratio remained low at 1.9 per cent.  

Ancoria, established in the wake of the 2013 financial crisis, has traditionally maintained a clean loan book, a key feature in its growth trajectory.  

A final decision on the takeover is not expected before September, given the time needed for supervisors to examine the submission.