The Turnover Value Index of Sales and Repair of Motor Vehicles recorded an increase of 15.7% compared to the corresponding quarter of the previous year, according to data released by CySTAT.

Motor vehicle sales increased by 20% in the first quarter, compared to the first quarter of 2023, vehicle maintenance and repair increased by 11.2% and the sale of motor vehicle parts and accessories recorded an increase of 8.4%. On the other hand, the sale, maintenance and repair of motorcycles and their parts and accessories recorded a 10.7% decrease, compared to the same period in 2023.

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The Bank of Cyprus has been honoured with the “Best Financial Institution Bond in Southeast Europe” award by EMEA Finance for its issuance of Additional Tier 1 (AT1) capital securities worth €220 million in June 2023. This accolade highlights the bank’s financial and operational strength, particularly significant as the bond issuance successfully reopened this market segment following the collapse of Credit Suisse.

The AT1 issuance was met with extraordinary demand, with an order book oversubscribed over twelve times, exceeding €2.75 billion. This overwhelming investor interest underscores the bank’s solid reputation and market confidence in its financial health and strategic direction.

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Bank of Cyprus CEO Panicos Nicolaou praised this achievement, viewing it as a milestone that aligns with the bank’s 125th anniversary celebrations. He noted that the successful bond issuance is a testament to the bank’s progress and resilience, reflecting its strategic initiatives aimed at strengthening its capital base and supporting sustainable growth.

The recognition from EMEA Finance places the Bank of Cyprus at the forefront of financial innovation and stability in the region. The award not only celebrates the bank’s past accomplishments but also sets a solid foundation for future endeavours in the evolving financial landscape.

The bond issuance and subsequent award signify a significant achievement for the Bank of Cyprus, reinforcing its position as a leading financial institution in Southeast Europe. As the bank continues to navigate the complex economic environment, this accolade serves as a reaffirmation of its strategic vision and commitment to excellence.

Cyprus’ ship registry in the first half of the year has shown an increase of ocean-going vessels for the first time in the last two years, due to adverse effects brought by geopolitical tensions affecting global shipping, Deputy Minister for Shipping Marina Hadjimanolis has said.

Speaking at the International Business Day organised by the Cyprus International Business Association Hadjimanolis cautioned that after the rise the geopolitical tensions due to the war in Ukraine and attacks on commercial shipping by the Houthi regime in the Red Sea, challenges may evolve and persist leading to turbulence this year.

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Stating that the maritime sector is an integral part of Cyprus’s identity, the Deputy Minister added that the continuous upgrading and strengthening of the services provided by the Shipping Deputy Ministry is undoubtedly one of the main priorities that have been set from the beginning, when the Government of Nikos Christodoulides took over in March 2023.

She stressed that an increase of 5.5% has been achieved during the last 6 months in the fleet of Cyprus-flagged seagoing vessels, after its two-year decline.

“The number of companies registered in the Cyprus Tonnage Tax System has been increased by 14%, reaching 420 in number,” Hadjimanolis said. Cyprus is the largest ship-management centre in the EU and one of the largest in the world.

Furthermore, the Deputy Minister pointed out that the Advisory Committee on Competitiveness and Quality Enhancement of the Cyprus Flag and the Advisory Committee on Competitiveness of the Cyprus Maritime Cluster have been established, to continuously improve and enhance the competitiveness of the Cyprus flag and Cyprus shipping, while the One-Stop Shipping Centre commenced its operations in November, aiming to provide quality service to all shipping companies, as well as companies whose activities are related to shipping and are based in Cyprus.

She also recalled that following a decision by the Council of Ministers, from January 2024, the annual tonnage tax for ships registered in the Register of Cyprus Ships will be reduced by up to 30% for each ship that demonstrates effective greenhouse gas emissions reduction measures.

This, Hadjimanolis said, ensures “that shipowners are rewarded for their efforts for decarbonization of the shipping sector.”

Big names such as Tesla and Samsung have shown interest in a public tender aiming to set batteries to store electricity in Cyprus, Minister for Energy, Commerce and Industry George Papanastasiou has said, adding that the first phase concerns a 150-Mega Watt storage facility for which a tender is expected to be launched in September.

Addressing the International Business Day organised by the Cyprus International Business Association (CIBA), Papanastasiou outlined the government’s strategy to reduce the electricity prices in Cyprus, which he described as the single source that would provide “a real chance” for the improvement of the country’s competitiveness.

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The Energy Minister referred to the three pillars that would render Cyprus as an energy hub and facilitate green transition. The first pillar concerns the creation “as soon as possible” of the terminal in Vasilicos for the introduction of Liquified Natural Gas (LNG) for electricity generation, which would directly reduce CO2 emissions by 35% to 40% and consequently the cost of electricity, as he stressed.

Such emissions account for €300 million tones of CO2 rights per annum, a cost transferred to the consumer, he added.

The second pillar concerns the further increase of renewables and mainly energy from photovoltaics. Papanastasiou stressed however that while Cyprus generates 750 MW of electricity from solar panels, only 19% enters the electricity grid while the remainder is discarded.

“This is unthinkable,” he said, noting that the Ministry is preparing to use a subsidy scheme for the development of a storage system with the private sector with a total subsidy of €40 million.

Papanastasiou said the project is in the stage of public consultation with the first phase expected to be launched in September for a 150 MW storage system.

“We are already seeing interest from big names such as Tesla and Samsung as 150 MW is a quite substantial capacity,” he added.

Moreover, according to the Energy Minister, the third pillar concerns the electricity interconnection between Cyprus and Greece, with a sub-sea cable called “Great Sea Interconnector,” estimated to be the largest in the world.

He pointed out that usually in the case of interconnectors, the electricity flows from the cheapest to the most expensive destination.

Papanastasiou recalled that the government awaits a cost and benefit analysis, by the Greek IPTO, the project promoter, to take its final investment decision to enter the project’s equity with €100 million.

But he noted that the project will happen, as it secured a €657-million grant from the European Commission via the Connecting Europe Facility, which is the largest financing provided in the context of the Facility.

He also noted that the government aims to launch a competitive market for electricity by July 2025, as well as to create a “smart” electricity grid which would facilitate the increase of renewables in Cyprus’ energy mix.

Recent shareholder activities at the Bank of Cyprus have raised significant concerns within the financial community. At the Cyprus International Business Association Forum in Limassol, it was revealed that major stakeholders CarVal and Caius are contemplating the sale of their 14.65% stake in the bank. Bloomberg’s report on this potential divestiture has sparked a discourse on the future implications for the Cypriot banking sector, which is currently experiencing a period of robust health with strong capital reserves and liquidity.

The potential exit of CarVal and Caius brings to light the broader question of stability and the impact of foreign investment on local financial institutions. Industry experts, including analysts Dimitris Efstathiou and economist Fiona Mullen, have weighed in on the situation. Efstathiou noted that while the sector does not currently require additional capital injections, the entry of new foreign shareholders could catalyse technological innovation within the bank. Mullen echoed this sentiment, emphasizing the need for the banking system to maintain stability and to adapt to potential changes in shareholder dynamics.

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The Bank of Cyprus, like many financial institutions in the region, has navigated through a tumultuous past, marked by economic crises and regulatory changes. The current high liquidity and capital levels are testament to its resilience and strategic management. However, the looming possibility of a major shareholder reshuffle introduces an element of uncertainty that could have far-reaching consequences for the bank’s operational and strategic directions.

The broader Cypriot banking sector could also feel the ripple effects of such a significant transaction. The introduction of new shareholders with different strategic priorities and visions could lead to shifts in business models, potentially affecting everything from customer service approaches to technological investments.

While the Cypriot banking sector enjoys a period of stability, the potential sale of a significant stake in the Bank of Cyprus by CarVal and Caius introduces an element of uncertainty. This development calls for careful monitoring and strategic planning to ensure the continued health and growth of the bank and the wider financial sector. The ability of the Bank of Cyprus to adapt to new ownership structures while maintaining its robust financial health will be crucial in navigating this period of change.

A recent KPMG report reveals that only 29% of companies feel prepared to have their Environmental, Social, and Governance (ESG) data independently assured, a minimal increase from previous surveys. This comes as regulatory deadlines for ESG reporting and assurance approach, particularly in the EU where large companies are expected to begin compliance in 2025.

KPMG’s annual ESG Assurance Maturity Index surveyed 1,000 senior executives across various sectors and regions. It categorises companies into Leaders, Advancers, and Beginners based on their preparedness for ESG data assurance. While there is some progress, with both Leaders and Advancers improving their scores, the gap between these groups and Beginners is widening, highlighting the urgent need for action.

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Larry Bradley, Global Head of Audit at KPMG, emphasised the evolving nature of ESG assurance readiness. “Getting ready for ESG assurance is a journey,” he noted, underscoring that companies often realise the increasing complexity of the task as they advance.

Geographical differences were notable, with France leading the scores, followed closely by Germany and Japan. Companies with higher revenues also demonstrated greater preparedness, with those earning over $100 billion achieving significantly higher maturity scores compared to those with lower revenues.

The survey highlighted the benefits of ESG readiness beyond compliance. Companies noted advantages such as greater market share, reduced costs, and new business models. However, the need for skilled personnel remains a significant challenge, with many companies planning to hire externally to meet their ESG goals.

Supply chain management is another critical area, with leading companies imposing stricter ESG requirements on their suppliers. This includes demanding ESG data integration and assurance, although such practices are still in the early stages.

A recent credit rating agency Morningstar DBRS report predicts substantial growth for the gambling and betting industry in the coming years, driven by the rising penetration of online gaming platforms. Despite differing market dynamics in the US and Europe, the global online gaming market, including sports betting, lotteries, and casino games, is expected to grow at an annual rate of 11% from 2024 to 2028.

US companies face a challenging regulatory environment but are poised for significant growth due to a large customer base and ongoing legalisation efforts. Conversely, European firms benefit from a more established regulatory framework and stable market dynamics, contributing to favourable credit profiles.

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The report highlights that the shift towards online gaming, accelerated by the COVID-19 pandemic, has increased user numbers and overall profits. With major events like Euro 2024 and the Paris Olympics on the horizon, betting activity is expected to surge, further boosting revenues for leading gambling companies.

However, DBRS warns that the long-term success of companies in this sector will depend on their ability to navigate market-specific risks and regulatory challenges, as well as their capacity for geographical diversification and brand strength. Despite the promising growth prospects, the US market’s instability presents a significant challenge for investors, while Europe’s mature market offers a more secure environment for business operations.

In a bold move to address global inactivity, Zing Coach, a health tech startup supported by Palta, has secured $10 million in Series A funding. This round, led by Zubr Capital and Triple Point Capital, promises to bolster the app’s AI-driven fitness solutions, enhance its workforce, and facilitate international market expansion.

Zing Coach stands out with its hyper-personalised workouts, driven by sophisticated AI that adapts to users’ data and performance metrics. Unlike traditional fitness apps, Zing Coach utilises advanced fitness tests and body composition scanners, providing users with a highly accurate and personalised training experience.

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This innovative approach has garnered significant user engagement, with over one million downloads since its 2021 launch. The app’s retention rates surpass those of its competitors, with users being 29% more likely to continue after the first day and 25% more likely to stick with it for a month or longer.

Zing Coach’s cutting-edge technology and strategic growth initiatives have attracted significant attention. Viktar Dzenisevich of Zubr Capital highlighted the transformative potential of AI in fitness, expressing confidence that Zing Coach will outpace competitors and achieve substantial growth.

CEO Tanya Parfenyuk envisions making healthy living accessible through affordable, high-quality digital coaching, a goal supported by the app’s continued innovation and expansion. Recent advancements include the Body Composition Scanner and AI-powered Flexibility Tests, further solidifying Zing Coach’s leadership in the digital fitness arena. With this latest funding, Zing Coach is poised to extend its reach and impact, leveraging AI to transform fitness habits and promote healthier lifestyles globally.

Apple will delay the launch of three new artificial intelligence features in Europe because of tougher EU tech regulations that require the giant to make its products and services compatible with those of competitors.

KEY FACTS 

• On Friday, the company announced that three of the new AI features — Phone Mirroring, SharePlay screen-sharing enhancements and Apple Intelligence (one of the long-awaited innovations that work with powerful generative models) — won’t be rolling out to EU users this year due to regulatory uncertainty related to the EU Digital Markets Act (DMA), reported by the Reuters agency.

IMPORTANT QUOTE

“Specifically, we are concerned that the interoperability requirements under the DMA may force us to compromise the integrity of our products in a way that threatens user privacy and data security. “We are committed to cooperating with the European Commission to find a solution that allows us to provide these features to our customers in the EU without jeopardizing their safety,” Apple said in an email.

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CONTRA

The EU is an attractive market with 450 million potential consumers and has always been open for business for any company that wants to provide services to the European internal market. So-called “gatekeeper” companies are welcome to offer their services in Europe, provided they comply with our rules aimed at ensuring fair competition,” said EU spokesman Thomas Rainier, quoted by The Verge, on the occasion of Apple’s statement.

KEY STORY 

The news comes after the iPhone maker unveiled its plans for the wider integration of artificial intelligence into Apple products.

However, the company is facing problems because of the Digital Markets Act (DMA), which came into force in March and provides for strict rules in the world of technology in the territory of the European Union. According to strict technology rules, iOS – the company’s operating system – has been designated as a so-called “gatekeeper”, which could force the tech giant to change its way of working in the region.

For months, Apple and Brussels have been embroiled in a regulatory battle over compliance, after the EU launched a probe in March into whether the company was still undermining competition.

Fintech company Revolut is targeting a $40 billion valuation in a move that could boost its value by 20%. The London-based startup wants to sell shares to cement its status as Europe’s most valuable startup. 

KEY FACTS 

• The SoftBank-backed company wants to sell existing shares worth about $500 million, including those owned by employees, the Financial Times wrote.
• The bank is working with Morgan Stanley on the sale.

ACCENT

The news comes amid challenges Revolut is trying to address. First of all, the startup is struggling to get a banking license, and it also reported some losses. The entire fintech sector has suffered defeats in the last two years. Stockholm-based Klarna, another prominent fintech, has sunk to $6.7 billion from a $46 billion fundraising in 2022. Since then, some venture capital investors have reduced their stakes in Revolut.

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WHAT TO WATCH FOR

Revolut is still trying to get a banking license, which is key for the fintech company to increase lending and profits. However, regulators delayed their decision after Revolut was rocked by problems, including a warning from auditors that they could not fully verify the revenue figures in the 2021 accounts.

The company suffered a loss in its latest delayed report for 2022 as the boom in cryptocurrency trading that previously boosted profits waned. Meanwhile, rising costs offset the benefits of larger customer deposits and higher interest rates.

BIG NUMBER

In 2021, the company was valued at $33 billion in a funding round. The stock transaction could now fetch a significantly higher valuation of $40 billion. That would surpass the market capitalization of British lender NatWest and Paris-based Société Générale.

KEY STORY 

Revolut was founded by Nikolay Storonsky and Vlad Yatsenko in 2015. Since then, it has significantly outpaced its competitors in terms of customer growth and aggressive international expansion. Revolut has around 40 million customers worldwide, with a third based in the UK. 

In 2021, it raised $800 million from investors including SoftBank’s Vision Fund 2 and Tiger Global Management.