Cyprus Business Now
The profitability of the Cyprus banking sector remarkably spiked by an annual 644 per cent in 2023, reaching €1.27 billion. This significant increase was fueled by the high-interest environment, according to data released by the Central Bank of Cyprus (CBC). Consequently, according to the aggregate Cyprus banking sector data published by the CBC, net interest income for 2023 jumped by 97 per cent to €1.92 billion, compared with €0.98 billion for the full year 2022.
In light of these developments, Cyprus is positioning itself to become a regional centre for technology and innovation. This ambition is underscored by the statement from Deputy Minister of Research, Innovation and Digital Policy, Nikodemos Damianou, at the 14th Nicosia Economic Congress.
Simultaneously, in January 2024, a slight decrease of 0.5 per cent was observed in the number of building permits issued by municipal authorities and provincial administrations, compared to the same month in 2023, as reported by the Cyprus Statistical Service (Cystat). Furthermore, the total value of these permits fell significantly by 8.3 per cent, and there was a 2.4 per cent reduction in the total area covered by these permits, leading to a noticeable decline of 11.1 per cent in the number of residential units planned.
In the tourism sector, the challenges are being addressed proactively. Deputy Minister of Tourism, Kostas Koumis, emphasized the importance of international collaboration to overcome the widespread challenges facing the tourism sector. Speaking at the 70th Session of the Europe Commission of the World Tourism Organisation (UNWTO) in Tirana, Koumis highlighted the commonality of issues across European tourist destinations, including the energy crisis, inflation, and labour shortages.
Adding to the tourism narrative, there was increased interest in organised trips from Poland to the Famagusta district during a roadshow in Poland by the Famagusta Tourism Board (Etap) and hoteliers of the district. The roadshow, organised by the deputy ministry of tourism between April 8 and 10, visited Warsaw, Krakow, and Katowice. Etap Famagusta engaged with leading Polish tour operators, aiming to “further strengthen the trend recorded in recent years, for an increased flow of tourists from various Polish cities.” Central to the discussions were the services and experiences that Famagusta district provided to its visitors, fostering optimism that tourist arrivals from Poland in 2024 will exceed those of the previous year.
Furthering the economic agenda, Commerce minister Giorgos Papanastasiou and the Republic’s Chief Scientist for Research, Innovation, and Technology, Demetris Skourides, were recently in Japan to promote Cyprus as a base for international business and as an emerging tech centre. This initiative is part of the government’s drive to woo Japanese investors and business leaders, by promoting Cyprus’ ambitious future vision, which includes becoming a hub for advanced technology and a base for international businesses. The mission participated in a business forum organised by the commerce ministry, the Chamber of Commerce (Keve), the Cyprus-Japan Business Association, and the Trade Center in Japan. The forum provided Papanastasiou with a prime opportunity to showcase Cyprus’ competitive advantages as an international business location.
The Cyprus Stock Exchange (CSE) concluded on Wednesday with positive outcomes, thereby marking profitability for the third consecutive day. The General Index advanced to 146.47 points, which signifies an increase of 1.27 per cent. In terms of financial volume, the transactions reached a value of €664,569.
In a similar vein, the FTSE/CySE 20 Index showcased a comparable performance, closing at 88.94 points and recording gains of 1.26 per cent.
Regarding the performance of individual stock market indices, a generally upward trend was observed with the notable exception of the Hotels sector, whose Index remained unchanged. More specifically, the Main Market experienced a substantial uptick, closing with gains of 2.07 per cent. Likewise, the Investment Market saw an impressive surge of 7.52 per cent, whereas the Alternative Market posted a modest increase of 0.10 per cent.
Turning our attention to specific securities, the Bank of Cyprus emerged as the focal point of investment interest, with transactions amounting to €333,531, although its closing price remained static at €3.67. Following closely, Dimitra Investments attracted significant investment as well, totalling €199,991, and its closing price escalated by 7.78 per cent to €0.97.
Other notable mentions include Logicom, which had investments of €57,571 with its closing price steady at €2.90, Hellenic Bank with €37,108 (also unchanged at €2.35 closing price), and the Cyprus Cement Company, which saw investments worth €8,152, with its closing price holding at €0.67.