Newsroom
Bank of Cyprus has posted impressive results for 2024, reporting net profits of €508 million, marking a 4% increase from the previous year’s €487 million. The results reflect the bank's strong performance and growth, despite slight fluctuations in some areas.
Solid Profits and Dividends
The bank’s Return on Tangible Equity (ROTE) for 2024 stood at 21.4%, a solid figure but down from 24.8% in 2023. For the fourth quarter of 2024, the bank saw €107 million in profits after tax, slightly down from €131 million in the third quarter.
In line with these strong results, the Bank of Cyprus is offering a generous total distribution of €241 million to its shareholders. This includes a cash dividend of €211 million and a €30 million share buyback program. The dividend payout, which corresponds to 50% of the bank’s adjusted profits, is higher than last year’s payout and translates to a healthy dividend yield of 12%, above the Eurozone banking sector average.
A Growing Deposit Base
The bank also saw growth in its customer deposits, which reached €20.5 billion by the end of 2024, a 6% increase compared to the previous year. Bank of Cyprus now holds a 37.2% share of the Cypriot deposit market, a slight decrease from last year but still a dominant position. Notably, over half of the deposits are protected by the Deposit Guarantee Fund, providing security for depositors.
The bank’s loan-to-deposit ratio stood at 49%, a slight improvement from the previous year, reflecting the bank's strong liquidity position. Furthermore, the bank maintains a healthy liquidity coverage ratio (LCR) of 309%, well above the regulatory minimum.
Record Lending and Strong Loan Portfolio
In terms of lending, Bank of Cyprus saw record levels in 2024, approving €2.4 billion in new loans, marking a 20% increase year-on-year. This includes loans to businesses, individuals, and small-to-medium enterprises. The bank’s loan portfolio grew by 4%, reaching €10.2 billion.
Non-performing loans (NPLs), which represent loans that are at risk of default, continued to decline, down 7% in Q4 2024, and now account for just 2.5% of total loans, compared to 3.6% a year ago.
A Confident CEO Looks Ahead
Panikos Nikolaou, CEO of Bank of Cyprus, expressed confidence in the bank's future, highlighting the robust results of 2024 and the bank's continued commitment to shareholder returns. “We’re starting 2025 from a position of strength,” said Nikolaou. “With a healthy loan portfolio, solid capital ratios, and strong liquidity, we’re well-positioned to continue delivering value to our shareholders.”
Looking forward, the bank plans to maintain its strong focus on prudent capital management, growing its loan portfolio, and diversifying its income sources. With a payout policy now between 50-70% of profits, Bank of Cyprus intends to continue rewarding shareholders while ensuring long-term growth and stability.
In summary, the Bank of Cyprus is starting 2025 with solid financials and a commitment to supporting both its customers and the wider economy, ensuring it remains a major player in the region.
