Expected to return to paying dividends to shareholders after 12 years
Following the approval of the ECB, which was received on Maundy Thursday, the Board of Directors of the Bank of Cyprus will propose to the shareholders for approval at the Annual General Meeting.
Bank of Cyprus became the first bank in Cyprus and Greece to receive approval from the European Central Bank (ECB) to pay a dividend, which is expected to return to paying dividends to its shareholders after 12 years.
Following the approval of the ECB, which was received on Maundy Thursday, the Board of Directors of the Bank of Cyprus will propose to the shareholders for approval at the Annual General Meeting, which will take place on 26 May 2023, the payment of a final dividend of €0.05, per ordinary per share, from the profits for the year ended December 31, 2022.
As announced by Bank of Cyprus, the proposed dividend totals €22.3 million and is equivalent to 14% of adjusted earnings before non-recurring items for the year ended 31 December 2022 or 31% of earnings after taxation for the year ended 31 December 2022.
“The Dividend proposed reflects the resumption of dividend payments after 12 years and supports the Group's position as a strong diversified organization, capable of providing a stable return to shareholders”, underlines the Bank of Cyprus.
The dividend, which is subject to approval by the EGM, will be paid in cash on June 16, 2023 to shareholders registered in the shareholder register on May 5, 2023 (Record Date), while the Ex-Dividend date has been set as May 4 2023. Further information will be set out in the EGM Invitation to be published on or about 25 April 2023.
The Common Equity Tier 1 (CET1) Ratio with transitional provisions and adjusted for the proposed Dividend, stands at 15.2% as at 31 December 2022 (compared to 15.4% published in the Group's Financial Results) and significantly exceeds the supervisory requirements.
In addition, Bank of Cyprus states that its Board of Directors has also approved the Group's dividend policy, the objective of which “is to provide a stable return to shareholders”.
“Dividend payout is expected to conservatively increase incrementally, taking into account market conditions, as well as capital and liquidity planning, with a target pay-out ratio of between 30%-50% of adjusted earnings before non-recurring items elements of the Group”, he underlines.
Statement of the Chairman of the Group
Commenting on the decision, Takis Arapoglou, President of the Group, emphasizes that “the resumption of dividend payments is an important milestone and marks a new chapter for the Group”.
“Today we have achieve our long-term goal of resuming dividend payments, reaffirming our commitment to delivering consistent returns to shareholders,” he adds.
Mr. Arapoglou also states that “our strong capital position, stable profitability and our digital capabilities allow us to support our customers, the Cypriot society and the development of the Cypriot economy”.
“We are deeply grateful for the trust of our customers, the support of our shareholders and the dedication of our staff which has been vital in the ten years of transformation of the Group”, he adds.
Finally, the Chairman of the Group states that Bank of Cyprus looks forward “to the future with optimism, taking into account our position of strength, our well-diversified business model as well as the resilience of the Cypriot economy”.
