Bank of Cyprus proposes five-fold increase on 2023 dividend, buyback (updated)

Bank of Cyprus Holdings

20/03/2024 14:51

(Adds CEO quote in paragraph 3)
       NICOSIA, March 20 (Reuters) - Bank of Cyprus  BOCH.CY 
plans to pay a total cash dividend of 112 million euros ($121
million) to shareholders on 2023 results and start a share
buyback worth up to 25 million euros, the lender said on
Wednesday.
    The board of directors of the bank said it had recommended a
final dividend of 0.25 euros per ordinary share, a five-fold
increase compared to 0.05 euros a year earlier. It would seek
shareholder approval for the dividend payout at its annual
meeting on May 17, it said.
    "Our diversified business model, integrating banking,
insurance, payments and digital innovation, with significant and
resilient non-interest income ... positions us well for a lower
interest rate environment," CEO Panicos Nicolaou said.
    The proposed dividend and buyback corresponds to a 30%
payout ratio on 2023 full-year results, up from a 14% payout
ratio from 2022, the bank said.
    The plans have been approved by the European Central Bank,
it said.
    It said it planned to provide a sustainable return to
shareholders, with its distribution expected to build 'prudently
and progressively' over time towards a payout ratio of 30-50%
including cash dividends and buybacks, subject to market
conditions as well as the outcome of capital and liquidity
planning.
($1 = 0.9223 euros)

 (Writing by Michele Kambas; Editing by Louise Heavens and
Emelia Sithole-Matarise)
 ((michele.kambas@thomsonreuters.com;))