Panayiotis Rougalas
The Bank of Cyprus has announced the appointment of Bank of America Europe DAC (BofA Securities) as a joint Corporate Broker, along with NUMIS Securities Limited (NUMIS) and Keefe, Bruyette & Woods (KBW, acting through Stifel Nicolaus Europe Limited), with immediate effect. According to sources from the bank, the appointment of Bank of America as a joint corporate broker with Numis and Keefe Bruyette & Woods (KBW) "is another example of the Bank's transformation into a strong, diversified, and sustainably profitable banking and financial services group." This announcement essentially follows the Bank of Cyprus's earlier announcement on April 13, 2023, that it intends to resume dividend payments after a twelve-year hiatus, subject to the necessary approvals from the European Central Bank. In its capacity as a corporate broker, Bank of America will support the Bank of Cyprus's commitment to investors across its global platform.
Please be reminded that on April 13, 2023, the Bank of Cyprus received approval from the ECB to pay dividends. Following the ECB's approval, the Board of Directors of BOC Holdings will propose, for approval at the Annual General Meeting (AGM) scheduled for May 26, 2023, the payment of a final dividend of €0.05 per ordinary share from the profits for the year ended December 31, 2022. The proposed dividend amounts to a total of €22.3 million and corresponds - as announced at that time - to a payout ratio of 14% of adjusted profit before non-recurring items for 2022 or 31% of profit after tax for the same year. Subject to approval by the AGM, the dividend will be paid in cash on June 16, 2023, to shareholders who are registered in the shareholder register as of May 5, 2023. The ex-dividend date has been set for May 4, 2023.
Gradual increase
Based on the April announcement, it is expected that dividend payments will gradually increase, taking into account market conditions, as well as capital and liquidity planning. The aim is for the pay-out ratio to range between 30% to 50% of the Bank's adjusted profit before non-recurring items. Shareholders who hold shares on the London Stock Exchange via Euroclear Bank and/or CREST should contact and/or consult their brokers regarding the relevant Euroclear Bank and/or CREST procedures for any queries regarding the dividend.
Shareholders who hold BOC Holdings shares represented by securities in the Cyprus Stock Exchange (CSE) will receive a letter providing them with further information about the dividend payment and the necessary steps they should take. It should be noted that the Common Equity Tier 1 (CET1) Capital Ratio, adjusted for the proposed dividend and with transitional provisions, stands at 15.2% based on the 2022 results, exceeding supervisory requirements. Finally, it is worth mentioning that the Bank of Cyprus will hold a meeting on Monday, May 15, 2023, to review the financial results of the Bank of Cyprus Group for the quarter ended on March 31, 2023. The financial results will be announced on Tuesday, May 16, 2023.
[This article was first published in Kathimerini's Oikonomiki printed edition and translated from its Greek original]
