Target, pay-out ratio to be between 30% – 50% of adjusted profitability before non-recurring items of the Bank
“It is yet another example of the Bank's transformation into a strong, diversified and sustainably profitable banking and financial services group,” bank sources noted.
By Panagiotis Rougalas
Bank of Cyprus announced the appointment of Bank of America Europe DAC (BofA Securities) as joint Corporate Broker with NUMIS Securities Limited (NUMIS) and Keefe, Bruyette & Woods (KBW, acting through Stifel Nicolaus Europe Limited), with immediate effect. The appointment of Bank of America as joint corporate broker along with Numis and Keefe Bruyette & Woods (KBW), as bank sources emphasize, “is another example of the Bank's transformation into a strong, diversified and sustainably profitable banking and financial services group”. This announcement essentially follows the announcement by the Bank of Cyprus on April 13, 2023, that it intends to resume the distribution of dividends after a twelve-year hiatus, receiving the necessary approvals from the European Central Bank. In its capacity as a corporate broker, Bank of America will support Bank of Cyprus' engagement with investors across its global platform.
It is recalled that, on April 13, the Bank of Cyprus received approval from the ECB for the payment of a dividend. With the approval of the ECB, the Board of Directors of BOC Holdings will propose to the shareholders for approval at the Annual General Meeting (AGM), to be held on May 26, 2023, the payment of a final dividend of €0.05 per ordinary share from profits for the year ending December 31, 2022. The proposed dividend amounts to a total of 22.3 million euros and is equivalent – according to the announcement at the time – to a payout ratio of 14% of adjusted profitability before non-recurring items for in the year 2022, or at a rate of 31% of the profitability after tax for the same year. 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, while the Ex-Dividend date is May 4, 2023.< /p>
Gradual increase
Based on the April announcement, the dividend payout is expected to be conservatively incremental, 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 the Bank's non-recurring items. 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 queries regarding the Dividend .
Cyprus Stock Exchange (CSE) Documentary Rights holders representing BOC Holdings shares will receive a letter with further information regarding the payment of the Dividend as well as the actions they should follow. It is noted that the Common Equity Tier 1 (CET1) with transitional provisions and adjusted for the proposed Dividend, amounts to 15.2% based on 2022 results and exceeds the supervisory requirements. Finally, it is noted that the Bank of Cyprus will meet on Monday, May 15, 2023 to examine the financial results of the Bank of Cyprus Group for the quarter ended on March 31, 2023. The financial results will be announced on Tuesday, May 16, 2023.
