Breaking news

S&P’s Credit Rating Upgrade Highlights Strengthened Position Of Bank Of Cyprus

by THEFUTURE.TEAM

June 19, 2024

In a significant development for Cyprus’ financial sector, Standard & Poor’s (S&P) has upgraded the long-term credit rating of the Bank of Cyprus to BB+, just one notch below investment grade, with a positive outlook. This upgrade reflects the bank’s enhanced capital position and robust profit-generation capacity, coupled with a reduction in economic risks within Cyprus.

Strengthened Capitalisation and Profitability

S&P’s upgrade follows a similar improvement in Cyprus’ sovereign credit rating, signifying broader economic stability. The agency cited the bank’s strengthened capitalisation and its ability to maintain solid profitability, even in a challenging economic environment. Despite the anticipated decline in favourable conditions due to high interest rates, S&P expects the Bank of Cyprus to sustain a resilient net interest margin of 350-400 basis points in 2024 and 2025.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Cost Control and Sustainable Profitability

S&P also highlighted the importance of strict cost control measures in maintaining sustainable profitability. The bank’s cost-to-income ratio is projected to move towards 44-46% by the end of 2026, a significant improvement from the high of 66% observed between 2018 and 2022. This reflects the bank’s strategic focus on efficiency and cost management.

Risk Normalisation and Asset Quality

The agency noted an ongoing normalisation of risk costs, including provisions for recovered real estate assets, which are expected to drop below 80 basis points. This decline is set to further fortify profitability as interest rates stabilise. S&P anticipates the bank will maintain a return on tangible equity above 16% for 2024, and around 12-13% from 2025 to 2026.

Broad Sectoral Recovery

The upgrade also reflects a broader recovery within the Cypriot banking sector. Following years of significant non-performing loan (NPL) sales, securitisations, write-offs, and recoveries, the sector has largely absorbed the impact of the 2012 financial crisis. Although the NPL ratio remains higher compared to other European banks, it continues to decline, reaching 7.3% at the end of March 2024, with a coverage ratio of 53.3%.

Future Prospects

Looking ahead, S&P expects Cypriot banks to gradually expand their operations as legacy issues from problematic loans diminish. The sector is projected to see an average lending growth of 2.5% from 2024 to 2027, marking a shift from the deleveraging trend observed in recent years.

The Future Forbes Realty Global Properties

Apple Launches Manufacturing Academy In Detroit To Train Next-Generation U.S. Manufacturers

by THEFUTURE.TEAM

July 29, 2025

Apple’s Strategic Investment In U.S. Manufacturing

In a bold move to expand its domestic manufacturing capabilities pursuant to growing political and economic pressures, Apple Inc. has inaugurated a state-of-the-art manufacturing initiative in downtown Detroit. The Apple Manufacturing Academy, administered by Michigan State University, is set to equip small and medium-sized businesses with cutting‐edge skills in manufacturing and artificial intelligence.

Advancing U.S. Industrial Capabilities

Under the leadership of newly designated COO Sabih Khan, Apple’s initiative is designed to train the next generation of American manufacturers. The academy will host hands‐on workshops led by Apple engineers, bridging the gap between advanced technology and traditional manufacturing. This move not only underscores Apple’s commitment to domestic investment but also seeks to unlock significant opportunities for U.S. businesses amidst the evolving global economic landscape.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

A Balancing Act Amid Political Pressures

The academy’s launch comes at a time when President Donald Trump has been vocal about his expectations for U.S. job creation and domestic production. While Trump has publicly encouraged Apple to relocate iPhone assembly to the United States—a strategy that experts argue would be both costly and time-intensive—the tech giant has made substantial investments in American operations. Previously, Apple pledged to invest over $500 billion in U.S. projects, including assembling AI servers in Houston and sourcing chips from TSMC’s Arizona facility.

Strengthening Industry Partnerships

The Detroit program builds on Apple’s successful model of global developer academies, a testament to its strategy of forging robust relationships with local governments and fostering innovation. The sole U.S. developer academy, also positioned in Detroit in partnership with Michigan State University, has already demonstrated promising outcomes with an annual intake of approximately 200 students.

A Forward-Looking Vision

By introducing the Apple Manufacturing Academy, Apple extends its influence beyond hardware production to actively nurture the U.S. manufacturing ecosystem. In addition to in-person training, the program will soon offer virtual courses and consulting services, ensuring that a wide range of enterprises can benefit from smart manufacturing practices. This initiative not only reflects Apple’s global stature as a technology leader but also reinforces its strategic alignment with national economic priorities.