To meet their main objective The Bank of Cyprus has adopted measures to improve profitability through a concerted effort to:
- increase net interest margins
- manage arrears and non-performing accounts and
- Contain operating expenses
Below is a list of figures that I have extracted from the annual report.
Profit on ordinary activities before tax
Profit before tax was £2,795,000 in the year 2001; in 2002 this figure rose to £4,748,000.
Operating Income and expenses
Operating income in the year 2001 was £20,877,000; in 2002 the figure fell to £20,650,000. Operating expenses in 2001 was £ (17,818,000); in 2002 the deficit was less with £ (15,917,000).
Net cash inflow from operating activities
The figure for this was £27,382,000 in the year 2001; this increased in the year 2002 to £33,436,000.
Assets
The amount for total assets was £592,393,000 in the year 2001; this increased in the year 2002 up to £662,284,000.
From the information I have provided it shows the bank has been meeting its first objective very well as it is doing better than it did in the previous year. The chairman also states that the bank has actually made a profit from the previous year, thus proving how successful the company has been.
In 2003 the chairman announced:
“I am pleased to report that Bank of Cyprus (London) Ltd returned a profit before tax of £4.7 million in 2002, up from £2.8 million in 2001.”
Skilled workforce
Another objective of the bank of Cyprus is to build up a skilled workforce. This helps provide a better quality service thus gaining more profits.
Training and developing careers builds a skilled workforce. The bank offers maximum opportunity for career development to all staff and aims to provide stimulating and satisfying careers at every level.
The Bank is committed to the training and development of its staff. The aim of its training policy is to enable staff to perform their job efficiently, to increase competencies in preparation for promotion and to help with programmes for self-development.
To achieve these objectives, various methods of training are used. Most training is offered on the job, but this is supplemented by formal courses. Internal courses provide the training which employees need to perform effectively the jobs to which they are assigned.
Employee development is a responsibility to be shared between staff and their Line Manager. The Bank places considerable importance upon identifying and fulfilling development needs and on encouraging individual initiative in development.
There are a variety of opportunities for staff to review and identify their development and training needs with their manager. Some of theses opportunities are covered informally and some by established processes such as the Annual Performance Review for all employees.
Once a training need has been recognised, there are various methods by which this development can take place:
- On the job training
- External courses
- Internal training by way of computer based material, videos, books, etc.
- External study to gain relevant qualifications.
This shows how well organised the bank is in meeting this objective, as it shows just how much time is taken to help the employees of the bank. The Bank of Cyprus also produces a staff handbook which is given to every new employee. This handbook gives the employee a very basic, but detailed look on everything he/she needs to know.
Serve the community
Another of the Banks objectives is to serve the community both locally and abroad.
Since 2002, the Bank of Cyprus (London) Ltd has adopted the policy of donating money to selected charities that would otherwise be allocated to sending Christmas Cards to its customers and friends.
To this end, on 12th March 2003, the Bank presented The Leukaemia Society (UK) and the United Kingdom Thalassaemia Society with cheques of £500 each. The presentation took place at the Palmers Green branch in North London.
The bank also serves the community in Cyprus.
The Bank of Cyprus (BOC) Group, in the context of an awareness- raising campaign in the fields of social contribution and health, launched in 1999 a campaign against cancer.
To this end, it has adopted "Christodoula March", an established charity event in Cyprus, organised by the Cyprus Anti-Cancer Society (CAS). All funds raised are used by the CAS for cancer patients' welfare programmes and medical treatment.
The March has been taking place every April for the past 27 years, and it has become a symbol of fighting for all cancer patients and for every one of us who knows somebody suffering from cancer.
Conclusion
It is very clear from the information that I have provided that the Bank of Cyprus (London) Ltd has been very successful at meeting its main objectives.
The bank has achieved its main objective to increase profit by managing its costs and by providing a quality service. This couldn’t be achieved without a skilled workforce, which is another main objective. The bank has worked very hard to make sure all their employees are fully trained and developed. The increase in profits has shown that the bank has been very successful at doing so. Another of the bank’s objective was to serve the community, by doing so the bank gains a good reputation and thus attracting new customers. The bank has also been successful at serving the community both locally and abroad by helping out charities and by holding an annual charity event in Cyprus.
Measuring the success
At the end of the year the Bank of Cyprus (London) Ltd makes up a report with all they year’s financial statements. By doing this they can compare the recent years statement to that of last years.
The report also includes the views of the director and general manager of the Bank of Cyprus.
There are multiple ways for the bank to measure its success, including:
- Five year financial summary
- Profit and loss account
- Balance sheet
- Cash flow statement
Below are some extracts from the financial statements and reports from 2002.
