(Alliance News) - Bank of Cyprus Holdings PLC on Wednesday said that it has received approval from the European Central Bank to pay a cash dividend, and will subsequently be launching a share buyback.
The Nicosia-based lender will propose a final dividend of EUR0.25 at its annual general meeting on May 17, representing a five-fold increase from EUR0.05 a year earlier.
It will also be launching a share buyback for an aggregate consideration of up to EUR25 million. This is expected to take place on both the London Stock Exchange and the Cyprus Stock Exchange.
The dividend and the buyback - collectively the distribution - corresponds to a 30% payout ratio for 2023, amounting to EUR137 million in total. This ratio, the lender explained, is in line with policy, and represents a material increase from 14% in 2022.
Overall, the CET1 ratio on a transitional basis was 17.4% as at December 31, versus a former reported 16.5%.
"Our ongoing commitment to delivering sustainable value to shareholders is demonstrated by our intended distribution comprising a significant cash dividend and our inaugural planned share buyback," said Chair Takis Arapoglou.
"The total quantum of cash dividend is around five times higher than last year's dividend and reflects the Group's strong financial and operational performance in 2023 which resulted in a rapid organic capital build-up."
Bank of Cyprus Holdings shares were trading 6.1% higher at 315.00 pence each in London on Wednesday morning.
By Holly Beveridge, Alliance News reporter
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Bk. Cyprus Hldg (BOCH)