The Board of Directors of Bank of Cyprus has approved the audited consolidated financial statements of the Group for the year ended 31 December 2006. The Annual Financial Statements have been posted on the Group’s website www.bankofcyprus.com (select Investor Relations /Financial Information).
The final audited financial results do not differ from the preliminary results, which were released on February 7, 2006.
Group profit after tax for 2006 reached CYP183 mln (EUR317 mln), recording an increase of 153% compared to 2005. There was a significant improvement in all of the Group’s performance indicators during 2006, with the return on equity ratio increasing to 21,7% and the cost to income ratio decreasing to 46,7%. The fast growth rate of the Group’s business in Cyprus, combined with the cost containment program, the very positive course of the Group’s insurance operations and the continuation of its dynamic expansion in Greece contributed to the profitability improvement. It is noted that the Group’s profits primarily come from core banking and insurance operations.
The improvement in the Group’s loan portfolio quality indicators is exceptional. Specifically, the ratio of non-performing loans to total loans has improved from 9,3% at 1 January 2006 to 5,6% at 31 December 2006, thus enabling the annual provision charge to decrease to 0,7% of total loans.
The increased Group profitability, led to the decision of the Board of Directors of the Bank to propose at the Annual General Meeting of its shareholders a dividend of CYP0,10 (EUR0,17) per share. The total of the proposed dividend and the interim dividend of CYP0,07 (EUR0,12) per share which was paid in December 2006 amounts to CYP0,17 (EUR0,29) per share compared to CYP0,07 (EUR0,12) paid last year, recording an increase of 143%.
It is reminded that the Directors’ Report and the Financial Statements for 2006 will be considered at the Annual General Meeting which is going to be convened on 6 June 2007. At the same General Meeting the final proposed dividend will also be considered for approval.
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