The Bank of Cyprus has released its first-quarter financial results, reporting a profit after tax of €133 million. Although this is a 4% decrease from the previous quarter, it represents a significant 40% increase compared to the same period last year. Group CEO Panicos Nicolaou expressed satisfaction with the positive start to the year and proposed a distribution of €137 million for 2023 earnings. This distribution includes a cash dividend of €112 million and a share buyback of up to €25 million, marking a 30% increase in payout ratio compared to the previous year.

The bank attributes its strong performance to the resilient economic outlook of Cyprus. The country experienced a 3.3% GDP growth in Q1 2024, surpassing the Euro area average. This growth is projected to reach 2.9% for the entire year. The Bank of Cyprus also saw a significant increase in new lending, with €676 million in the first quarter, a 46% increase compared to the previous quarter. Additionally, its gross performing loan book reached €10 billion, showing a 2% increase quarter-on-quarter.

Despite a slight 3% decrease in Net Interest Income (NII), which amounted to €213 million, the Bank of Cyprus maintains a strong Return on Tangible Equity (ROTE) of 23.6%. This demonstrates the bank’s profitability and efficiency, even in the face of geopolitical uncertainty.

Read the full article from the original source: https://cyprus-mail.com/2024/05/16/bank-of-cyprus-posts-e133-million-profit-new-lending-hits-e676-million/