The attention of the investment community is focused on London and more specifically on the BofA/Merrill Lynch conference
By Panagiotis Rougalas
The attention of the investment community is focused on London and more specifically on the BofA/Merrill Lynch conference which is considered one of the most important of the year.
At the conference which is a first-class opportunity to highlight Cyprus as well as the Bank of Cyprus which, as we are informed, participates, the meetings so far leave very positive messages.
The Bank of Cyprus, represented by the CEO, Panikos Nikolaou and the Executive Director of the Financial Department, Eliza Livadiotou, is “building ground” to find the desired investors who will want to come to Cyprus.
The same information states that in the English capital there is satisfaction both for the image presented by the Bank and for the economy on the island, with the bank's management hearing positive comments regarding the results it has presented in the first half of 2023, but also for those that they will come.
The same information states that while the comments of investors for the Bank of Cyprus, as well as for the economy of Cyprus, were positive, it was emphasized that the effort made at the same rate must be continued within the bank, but also in the economy in general.
According to what was recorded in the Group's latest financial results for the first half of 2023, on June 8, 2023 Bank of Cyprus presented and discussed the Group's revised outlook at the Investor Briefing which was also held in London. During the Investor Briefing, the BOC had revised its financial targets for 2023 and 2024 and upgraded the target for Return on Tangible Equity (ROTE) to above 17% and above 14% respectively, from above 13% annually ( as previously announced on February 20, 2023). The upgrade is mainly due to revised expectations for net interest income, mainly to reflect higher interest rates for longer. According to its calculations, the Bank expects by December 31, 2025 the Common Equity Tier 1 (CET1) Ratio to rise to approximately 19% after deducting the anticipated dividends, in accordance with the dividend distribution policy.
The pay-out ratio is expected to conservatively increase gradually, aiming for a ratio between 30%-50% of adjusted earnings before non-recurring items.