deposits

European banks set to return record sums to shareholders

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European banks set to return record sums to shareholders

European banks are projected to distribute a record 120 billion euros in dividends and share buybacks to investors in 2023, driven by profits from higher interest rates. Bank of Ireland and other major banks like BNP Paribas, Deutsche Bank, and Santander have announced increased payouts. UBS is restarting its buyback program, and Monte dei Paschi di Siena will pay its first dividend in 13 years. UniCredit plans to distribute all of its 2023 profits, totaling 8.6 billion euros, including 5.6 billion euros in buybacks, and aims to share 90% of its 2024 net profit. Dividend payouts for 2024 are expected to reach nearly 80 billion euros, with total capital returns to shareholders nearing 120 billion euros. Over the next 15 months, European banks are anticipated to pay out a total of 172 billion euros, about 17% of their market capitalisation. The profit increase is attributed to the gap between interest rates charged to borrowers and paid on deposits, boosting share prices. The top 50 European banks are expected to have a dividend yield of 7.3% in 2024. However, concerns about falling interest rates and a weaker economic outlook have some investors worried, with predictions of reduced bank capital returns starting from next year.

The Greek debt crisis and its misconceptions

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The Greek debt crisis and its misconceptions

The text discusses the Greek debt crisis, highlighting inaccuracies and misconceptions in public debate. It references Nikos Garganas’ book, which outlines the crisis’s causes, including the misuse of fiscal space and increased government spending leading to significant debt. The crisis was exacerbated by the global financial crisis and Greece’s inability to find investors. The European Union initially refused a bailout, citing the ‘no bailout’ clause, but eventually provided a €110 billion Memorandum to prevent bankruptcy and potential contagion. The IMF participated despite concerns over debt sustainability. A debt restructuring, including a 53.5% bond haircut, was implemented in 2012, which, despite criticisms, was deemed necessary and led to improved debt sustainability. The text also refutes myths about the crisis, emphasizing that memoranda were a response to, not a cause of, the crisis and that debt relief alone would not have ended austerity. It concludes that understanding the crisis’s causes and implementing structural reforms are crucial for preventing future crises.

Kalavasos archaeologists discover ancient room

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Kalavasos archaeologists discover ancient room

An ancient room and other artefacts were discovered during archaeological excavations at the Kalavsos-Laroumena site near Larnaca in 2023. The discoveries were made in two trenches, each measuring 16 square meters. The archaeologists found multiple large drystone walls containing pottery. One wall had thick ash and charcoal deposits, indicating the presence of architectural structures on the Laroumena hillside during the Middle Cypriot period, rather than agricultural use. One of the walls was notably thick, measuring 90 centimeters. Items such as spindle whorls, shell beads, a stone pendant, and pottery were found. Evidence of stone toolmaking was also observed, suggested by the large number of worked stone flakes and blades found near the site.

Kalavasos archaeologists discover ancient room

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Kalavasos archaeologists discover ancient room

An ancient room and other artefacts were discovered at the Kalavasos-Laroumena archaeological site near Larnaca. The discoveries were made in two 16 square meter trenches. The archaeologists found multiple large drystone walls containing pottery, with one wall having thick ash and charcoal deposits. The back wall of the room was beneath a modern terrace wall, indicating that the Laroumena hillside was terraced in the Middle Cypriot period for architectural purposes, not agriculture. One of the walls was particularly thick, measuring 90 centimeters. Items such as spindle whorls, shell beads, a stone pendant, and pottery were found. The presence of a large number of worked stone flakes and blades suggests that stone toolmaking occurred near the site.

‘, Excellent’ Cronos gas discovery off Cyprus

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‘, Excellent’ Cronos gas discovery off Cyprus

– Cyprus’ energy ministry celebrated the successful completion of an appraisal well at Cronos-2 in Block 6 of Cyprus’ Exclusive Economic Zone (EEZ), conducted by Eni and TotalEnergies.
– The Cronos-2 well is located 160 km off the coast of Cyprus and confirmed the lateral extension of the Cronos-1 discovery, which is 3 km away.
– The well revealed a net reservoir thickness of 115 meters.
– A Drill Steam Test indicated a high-quality natural gas reservoir with a high production capacity estimated to exceed 150 million Standard Cubic Feet per Day (MMSCFD) in production configuration.
– Cronos is the third natural gas discovery in Block 6, following Calypso in 2018 and Zeus in 2022.
– The energy ministry and the consortium are exploring ways to optimally exploit the gas deposits, including supplying gas to the Eastern Mediterranean, Cyprus, and Europe.
– The cluster of gas discoveries is expected to accelerate their development.
– Eni and TotalEnergies have made separate announcements regarding the appraisal of the Cronos gas discovery.
– The production test at Cronos-2 was instrumental in progressing with the studies to select the best fast-track development option.
– The well encountered the same carbonate reservoir sequence as Cronos-1, confirming hydraulic communication and a connected thick gas column with excellent permeability intervals.
– The production test at Cronos-2 proved the excellent gas deliverability capacity of the discovery.
– Eni and TotalEnergies are committed to swiftly progressing towards selecting the most suitable and economically viable development solution to contribute to the supply of gas to Europe and the region.
– TotalEnergies’ Senior Vice President Middle East & North Africa, Exploration & Production, Julien Pouget, stated that the successful appraisal of the Cronos gas discovery confirms significant resources and production potential in Block 6.
– Block 6 is operated by Eni with a 50% interest, and TotalEnergies is a partner holding the other 50% interest.
– Eni also operates Blocks 2, 3, 8, and 9 and has participating interests in Blocks 7 and 11 operated by TotalEnergies.
– TotalEnergies also has interests in offshore Blocks 2, 3, 8, and 9 in Cyprus.

Attorney General: Filed an appeal against the decision of the District Court of Limassol for compensation of depositors of Laiki

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Attorney General: Filed an appeal against the decision of the District Court of Limassol for compensation of depositors of Laiki

The District Court ruled in favor of the plaintiffs and determined that they are entitled to compensation from the Republic for the losses they suffered due to the devaluation of deposits in Laiki Bank in 2013. The General Prosecutor of the Republic has filed an appeal against the decision of the District Court. The Republic disputes the findings of the Court regarding its responsibility in handling the economic crisis and its connection to the collapse of the banking system and the devaluation of deposits. The Court's decision deviates from previous decisions in similar cases where similar claims were rejected by the courts.

Bank deposits see increase

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Bank deposits see increase

In December, total deposits in the banking system increased by €346 million, reaching €52.2 billion. Total loans also increased by €284.2 million, reaching €24.8 billion. The system liquidity, which is the difference between deposits and loans, was set at €27.4 billion. Deposits from residents of Cyprus increased by €388 million, with household deposits increasing by €461 million. Deposits from domestic non-financial corporations decreased by €252 million. Deposits from other domestic sectors increased by €179 million. Loans to residents of Cyprus increased by €132.9 million, with loans to households increasing by €99 million and loans to non-financial corporations increasing by €54.5 million. Loans to other domestic sectors decreased by €20.6 million.