Bank of Cyprus targets mid‑teens ROTE and higher payouts through 2028

Bank of Cyprus Holdings

03/03/2026 11:08

March 3 (Reuters) - Bank of Cyprus BOCH.CY said on Tuesday it expects to deliver a mid-teens reported return on tangible equity (ROTE) for 2026-2028, equivalent to over 20% based on a 15% CET1 ratio, as it updated its financial targets and capital allocation framework.

• Bank of Cyprus sees net interest income stabilising in 2026 and growing about 3% annually through 2028

• It also expects recurring non-interest income to grow around 4% a year, driven mainly by insurance operations

• Sees organic capital generation at 350–400 basis points per year over 2026–2028

• The lender said it targets around 4% average annual loan growth through 2028, including cautious expansion of its international book to 2 billion euros ($2.3 billion) by end-2028 from 1.4 billion at the end-2025

• The Cypriot group aims for a 70% ordinary payout and up to a 20% top-up dividend in 2026, for a total payout of up to 90%, while for 2027 and 2028 it aims for a 70% ordinary payout and up to a 30% top-up dividend, taking total distributions to as much as 100% a year, mainly in cash

($1 = 0.8627 euros)

 (Reporting by Antonis Pothitos. Editing by Mark Potter)

 ((antonis.pothitos@thomsonreuters.com; +48 58 769 65 78;))