First Stock Reset
The Bank of Cyprus is proceeding with the quintuple of the dividend it gives to its shareholders for 2023, simultaneously activating the share buyback tool for the first time.
In particular, following relevant approval from the European Central Bank (ECB), the Bank announced a dividend distribution of 25 cents per ordinary share for 2023 from the profits for the year ended 31 December 2023, quintupling the previous year's dividend (€0.05 per ordinary share), which in cash corresponds to €112 million, while at the same time it decided to repurchase own shares of up to €25 million
Thus, the total distribution corresponds to a payout ratio of 30% for the year ending on December 31, 2023 and in cash amounts to a total of €137 million.
“The distribution reflects the Group's strong capital position, high liquidity and the continuation of the effort to provide a stable return to shareholders,” the Bank said in a statement, adding that the capital ratio common equity class (CET1) with transitional provisions amounts to 17.4%2 on December 31, 2023, reflecting a payout ratio of 30% for the year ended December 31, 2023.
The Bank reminded that the objective of the Group is to provide a stable return to the shareholders. “The distribution of the Group is expected to mark a conservative gradual increase with the aim of the percentage (payout ratio) ranging between 30-50%, and includes cash dividends and repurchase of own shares, taking into account market conditions as well as capital and liquidity planning” , he added.
The dividend, subject to approval by the Annual General Meeting (AGM), will be paid in cash on June 14, 2024 to shareholders registered in the shareholders' register on April 26, 2024 ('File Date3') while the Ex-Dividend date ('Ex-Dividend date4') is set as April 25, 2024. Further information will be set out in the EGM Invitation to be published on or around April 12, 2024.
At the same time, it is reported that, after receiving approval from the ECB, the group announced its intention to start the repurchase program of the Company's own shares, with the total amount amounting to €25 million.
The program will be implemented on the London Stock Exchange and the Cyprus Stock Exchange, it states.
As noted, the initiation and implementation of the share buyback program will be in accordance with the company's general authorization for the repurchase of the Company's ordinary shares, as approved by the shareholders at the EGM on May 26, 2023, which is subject to renewal at the EGM scheduled to take place on 17 May 2024, subject to ECB approval.
Arapoglou: Stable return to shareholders
In a statement, the Bank's Chairman of the Board, Takis Arapoglou, said that “our continued commitment to delivering consistent returns to shareholders is evidenced by the proposed distribution which includes a significant cash dividend and the first planned repurchase of own shares”.
“The total cash dividend,” he added, “is approximately five times higher than the dividend paid the previous year and reflects the Group's strong financial and operational performance during 2023, which accelerated organic capital generation”.
“We are proud that the Bank, in its 125th year of operation, is a well-capitalised, diversified Bank that generates sustainable profitability ” continued Mr. Arapoglou.
He concluded by saying that “we remain focused on delivering consistent returns for our shareholders and continue to focus on supporting our customers and society as and in the development of the Cypriot economy”.
