Bank of Cyprus is expected to upgrade its targets for the full year, as CEO Panicos Nikolaou said at the analysts' briefing that "all financial targets, including distribution, will be updated". The reason? The good figures announced by the bank, which showed an increase in the capital base and a higher return on tangible equity (ROTE), up 20%. 

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"In this financial year, we are targeting a dividend reward of 50% of this year's earnings through a dividend and share buyback programme. The bank's distribution policy is expected to be reviewed in the context of the prevailing market conditions," Papanikos noted, adding that "from the beginning of 2025, no approval from the SSM will be required for dividend payments". Recall that the bank paid a dividend of €0.05 per share from 2022 earnings, marking a return to dividend payments after 12 years. 

THE RED loan

The bank maintains good asset quality, and when asked by analysts, the bank's CEO stressed that "there are no indications of risks in our loan portfolio". The non-performing loan ratio fell to 2.4%, with the bank having agreed with funds to sell a portfolio of non-performing loans, which are mostly secured. The transaction with Cerberus Global is expected to be completed in the first half of next year and has a book value of approximately €27 million and a contractual balance of €149 million.