BOC reports €349M in profits, plans employee bonuses for 2024

In a significant financial turnaround, Bank of Cyprus reported a notable profit of €349 million for the nine months ending September 30, 2023, marking a substantial improvement from the €19 million loss in the same period last year. The Return on Equity (ROE) reached an impressive 24.6%, with the third quarter contributing €129 million to the overall profit, reflecting a 3% increase from the previous quarter.

The Company's net interest income saw a remarkable surge, reaching €572 million for the nine months, reflecting a substantial 144% year-on-year increase. The net interest margin for the same period increased to 3.32%, signaling positive trends in interest rates.

Despite a 10% decline in new lending in Cyprus for Q3 2023, totaling €445 million, the cumulative new lending for the nine months reached €1,563 million, showcasing resilience in a rising interest rate environment.

Maintaining a robust financial position, the Company's Common Equity Tier 1 (CET1) ratio, a key indicator of financial strength, stood at 15.2% as of September 30, 2023. Customer deposits remained stable at €19,267 million, with a market share of 37.7% in Cyprus.

In a strategic move following the profit announcement, Bank of Cyprus CEO Panicos Nikolaou unveiled plans for an incentive program in 2024. Nikolaou emphasized the bank's commitment to rewarding approximately one-third of its staff with 'over and above' bonuses, describing it as a "one-off" initiative that aims to become an annual tradition, contingent upon the bank achieving specific goals. This move aligns with the bank's vision for sustained growth and strategic adaptation to evolving market dynamics.

Nikolaou ruled out a mass Voluntary Exit Scheme, indicating that any such scheme would be limited to 30 to 40 people annually, with the goal of renewing the bank's workforce both in terms of age and skill set. The Bank of Cyprus's positive financial trajectory not only positions it as a key player in the industry but also underscores its dedication to fostering a motivated and skilled workforce.