REG - Bank of Cyprus Hldgs - Announcement of Distribution

Bank of Cyprus HoldingsAnnouncement

20/03/2024 07:00

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RNS Number : 5673H  Bank of Cyprus Holdings PLC  20 March 2024

 

 

Announcement

 

Payout ratio of 30% for FY2023 Distribution to shareholders

 

Proposed cash dividend and intention to commence share buyback

 

Nicosia, 20 March 2024

 

 

 

Group Profile

 

The Bank of Cyprus Group is the leading banking and financial services group
in Cyprus, providing a wide range of financial products and services which
include retail and commercial banking, finance, factoring, investment banking,
brokerage, fund management, private banking, life and general insurance. At 31
December 2023, the Bank of Cyprus Group operated through a total of 64
branches in Cyprus, of which 4 operated as cash offices. The Bank of Cyprus
Group employed 2,830 staff worldwide. At 31 December 2023, the Group's Total
Assets amounted to €26.6 bn and Total Equity was €2.5 bn. The Bank of
Cyprus Group comprises Bank of Cyprus Holdings Public Limited Company, its
subsidiary Bank of Cyprus Public Company Limited and its subsidiaries.

 

Bank of Cyprus Holdings Public Limited Company ('BOC Holdings', or the
'Company' and together with its subsidiaries, the 'Group') is pleased to
announce that it has obtained approval from the European Central Bank ('ECB')
to pay a cash dividend and to conduct a share buyback programme (together, the
'Distribution'), demonstrating the Group's strong financial performance and
strategic progress.

 

The Distribution corresponds to a 30% payout ratio(1) for FY2023 and amounts
to €137 mn in total, comprising a cash dividend of €112 mn and a share
buyback of up to €25 mn. The payout ratio(1) for FY2023 of 30% is in line
with the Distribution Policy and represents a material increase compared to
the previous year (14% payout ratio(1) for FY2022).

 

The Distribution reflects the Group's robust capital position, ample liquidity
and continuation in the delivery of sustainable shareholder value.

 

Overall, the CET1 ratio on a transitional basis stands at 17.4%(2) as at 31
December 2023 reflecting the 30% payout ratio(1) for the year ended 31
December 2023.

 

Distribution Policy

 

The Group aims to provide a sustainable return to shareholders. The Group's
Distribution is expected to build prudently and progressively over time,
towards a payout ratio(1) of 30-50% including cash dividends and buybacks,
taking into consideration market conditions as well as the outcome of capital
and liquidity planning.

 

Cash Dividend

 

The Board of Directors of BOC Holdings has resolved to propose to the Annual
General Meeting ('AGM') that will be held on 17 May 2024 for approval, a final
cash dividend of €0.25 per ordinary share in respect of earnings for the
year ended 31 December 2023, a five-fold increase compared to €0.05 in prior
year.

 

Subject to approval at the AGM, the cash dividend is expected to be paid on 14
June 2024 to those shareholders on the Company's share register on 26 April
2024 ('Record date'(3)) with an Ex-Dividend date(4) on 25 April 2024. Further
details will be provided in the AGM Notice that will be published on or around
12 April 2024.

 

Intention of Commencement of a Share Buyback Programme

 

Furthermore, the Group announces today that following the ECB's approval, it
intends to commence a programme to buy back ordinary shares in the Company for
an aggregate consideration of up to €25 mn. It is expected that, once
launched, the programme will take place on both the London Stock Exchange and
the Cyprus Stock Exchange.

 

The launch and implementation of the share buyback programme will comply with
the Company's general authority to repurchase the Company's ordinary shares as
approved by shareholders at the Company's AGM on 26 May 2023, which is subject
to renewal at the AGM scheduled to take place on 17 May 2024, and with the
terms of the approval received from the ECB.

Further details concerning the proposed share buyback programme will be
announced in due course.

 

Mr. Takis Arapoglou, Chairman of the Group commented:

 

'Our ongoing commitment to delivering sustainable value to shareholders is
demonstrated by our intended distribution comprising a significant cash
dividend and our inaugural planned share buyback.

 

The total quantum of cash dividend is around five times higher than last
year's dividend and reflects the Group's strong financial and operational
performance in 2023 which resulted in a rapid organic capital build-up.

 

We are proud that the Bank, now in its 125(th) year, is well-capitalised,
diversified and generates sustainable profitability. We remain focused on
delivering shareholder value whilst continuing to support our customers,
Cypriot society and the growth of the Cypriot economy.'

 

For further information, please contact Investor Relations at
investors@bankofcyprus.com (mailto:investors@bankofcyprus.com) .

 

 

 

(1.      ) The payout ratio is calculated on Group's adjusted recurring
profitability, defined as profit after tax before non-recurring items
(attributable to the owners of the Group) taking into account distributions
under other equity instruments such as the annual AT1 coupon.

(2.      ) Compared to the previously reported CET1 of 16.5% that
included a dividend accrual at the top end of the Group's dividend policy in
line with Commission Delegated Regulation (EU) No 241/2014 principles.

(3.      ) Record date refers to the date of the share register where
shareholders are eligible for the proposed dividend.

(4.      ) Ex-dividend date refers to the day where the Company's stock
begins to trade without the value of the subsequent dividend.

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