Bank employees’ union Etyk has issued a circular addressing growing speculation surrounding a potential takeover of the Cyprus Development Bank (CDB bank), stressing that it is monitoring developments closely.

Etyk said that it is particularly concerned about the future of the bank and the security of its employees.

“Our organisation is following with strong interest the developments around CDB bank and its future, both as an institution and in particular concerning the staff it employs today,” the union said.

It emphasised that safeguarding jobs and employee rights would remain its priority in any change of ownership.

“As in all similar cases of a change in the ownership structure of a bank, our organisation’s primary concern is to create the conditions for the survival of the bank in its new form and, of course, the protection of the rights and jobs of all its staff,” Etyk said.

What is more, the union warned that it would not accept any attempt to victimise or exclude employees.

“Therefore, based on the above, we want to remind every interested party that our organisation will not accept victimisation and exclusions of colleagues,” it said.

Etyk stressed that any prospective buyer must take into account the full transfer of staff to new ownership.

“For this reason, whoever is interested in a possible purchase of CDB bank must keep in mind that all colleagues will be transferred to the new owners,” it said.

The union added that if such a commitment were not respected, it would not hesitate to take strong measures.

“In a different case, our organisation will take dynamic action to defend the interests of colleagues,” it warned.

It should be mentioned that the bank has been the subject of acquisition interest for several years.

In late 2023, talks with AstroBank over a potential deal collapsed despite reports that negotiations had reached an advanced stage.

Around the same time, the Cyprus News Agency reported that CDB bank was in discussions with an Armenian banking institution regarding a possible acquisition.

Interest in the bank has not been limited to Cyprus, with potential buyers from abroad also linked to the lender.

Any change in ownership structure would require approval from the Central Bank of Cyprus (CBC) and, in the case of a qualified holding, from the European Central Bank (ECB).

Meanwhile, CDB bank’s financial results for 2024 showed a sharp decline in profitability, largely due to surging costs.

Profit after tax for 2024 dropped to €4.09 million, down 41 per cent from €6.96m in 2023.

Total net income fell to €22.8m, a 9 per cent decrease year-on-year, with interest expenses rising steeply by 192 per cent to €6.2m, eroding gains from higher interest income.

Despite profitability pressures, the bank maintained strong capital and liquidity positions.

At the end of 2024, the Common Equity Tier 1 ratio stood at 22.25 per cent and the overall Capital Ratio at 27.38 per cent, both well above regulatory requirements.

The Liquidity Coverage Ratio was also robust at 348 per cent, supported by €277m in liquidity surplus.

What is more, customer deposits grew 12 per cent to €549m.

The bank continued to address non-performing exposures, which declined by 9 per cent to €37.7m, with a new plan aiming for a further 34 per cent reduction by 2025.

Lending activity also picked up, with new loans rising 152 per cent to €34m.

Strategic priorities focused on strengthening the balance sheet, improving asset quality, and investing in technology upgrades to enhance efficiency and resilience.