The process restarts after 10 years – Received approval from the European Central Bank
Bank of Cyprus Holdings Public Limited Company ('BOC Holdings' and, together with its subsidiaries, the 'Group') has today received approval from the European Central Bank ('ECB') to pay a dividend.
With the approval of the ECB, the Board of Directors of BOC Holdings is pleased to propose to shareholders for approval at the Annual General Meeting (“AGM”), to be held on 26 May 2023, the payment of a final dividend of €0.05 per ordinary share from the profits for the year ended 31 December 2022 (the “Dividend”). The proposed Dividend totals €22.3 million and is equivalent to a pay-out ratio of 14% of the adjusted profitability before non-recurring items1 for the year ended 31 December 2022 or 31% of the profitability after taxation2 for the year ended 31 December 2022. The Dividend, subject to approval by the EGM, will be paid in cash on 16 June 2023 to shareholders registered in the register of shareholders on 5 May 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 April 25, 2023.
The Common Equity Tier 1 Index (CET1 ) with transitional provisions and adjusted for the proposed Dividend, amounts to 15.2%3 on 31 December 2022 (compared to 15.4%3 published in the Group's Financial Results) and significantly exceeds regulatory requirements.
The proposed Dividend reflects the resumption of dividend payments after 12 years and supports the Group's position as a strong diversified organization capable of delivering consistent returns to shareholders.
Dividend Policy
The Board of Directors has also today approved the Group's dividend policy. The Group's objective is to provide a stable return to shareholders. Dividend payout is expected to conservatively increase gradually, taking into account market conditions, as well as capital and liquidity planning4, with the aim of a pay-out ratio of between 30%-50% of adjusted profitability before non-discretions recurring elements1 of the Group.
Mr. Takis Arapoglou, Chairman of the Group commented:
“Today we have achieved our long-term goal of resuming dividend payments, reaffirming our commitment to deliver consistent returns to shareholders.
The resumption of dividend payment is an important milestone and marks a new chapter for the Group. Our strong capital position, stable profitability and digital capabilities allow us to support our customers, Cypriot society and the development of the Cypriot economy.
We are deeply grateful for the trust of our customers, support of our shareholders and the dedication of our staff which has been vital in the ten years of transformation of the Group. We look to the future with optimism, considering our position of strength, our well-diversified business model as well as the resilience of the Cypriot economy.”
Shareholders holding shares on the London Stock Exchange through Euroclear Bank and/or CREST should contact and/or consult their brokers for the relevant procedures of Euroclear Bank and/or CREST for any questions regarding the Dividend.
