BoC receives ECB approval to pay dividends

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The Bank of Cyprus is the first bank in the country and Greece to receive approval from the European Central Bank (ECB) to pay dividends.

The lender is expected to resume paying dividends to its shareholders after 12 years, following the 2013 financial crisis in which depositors were given a ‘haircut’ to secure international loans.

Following the ECB’s approval last week, the Bank of Cyprus board will propose to shareholders at the Annual General Meeting (AGM) on May 26  the payment of a final dividend of €0.05, per ordinary share, from 2022 profits.

As announced by the Bank of Cyprus, the proposed dividend totals €22.3 mln and is equivalent to 14% of adjusted earnings before non-recurring items for 2022 or 31% of earnings after taxation.

“The proposed dividend reflects the resumption of dividend payments after 12 years and supports the Group’s position as a strong, diversified organisation, capable of providing a stable return to shareholders,” the bank said.

The dividend, subject to approval by the AGM, will be paid in cash on June 16, 2023, to shareholders registered in the shareholder register on May 5, 2023 (Record Date), while the Ex-Dividend date has been set as May 4.

Further information will be given in the AGM Invitation to be published on or about April 25.

The board has also approved the Group’s dividend policy, which “is to provide a stable return to shareholders”.

Takis Arapoglou, Chair of BoC, emphasises that “the resumption of dividend payments is an important milestone and marks a new chapter for the Group.”