Bank Of Cyprus Holdings Public Limited Company (BOCH) H1 2024 earnings summary

Executive summary

• Achieved profit after tax of €270 million for H1 2024, up 23% year-over-year, with ROTE at 23.7% and EPS at €0.61, reflecting strong profitability and shareholder value creation.

• Upgraded 2024 and 2025 financial targets, now expecting ROTE to exceed 19% for 2024 and mid-teens for 2025, with CET1 generation over 300 bps per annum before distributions.

• Announced intention to list shares on the Athens Stock Exchange and delist from the London Stock Exchange to enhance liquidity, market visibility, and investor access.

• Maintained robust capital, liquidity, and asset quality, with CET1 ratio at 18.3% and NPE ratio at 2.8%.

Financial highlights

• Net interest income for H1 2024 was €420 million, up 17% year-over-year; Q2 NII at €207 million, down 3% sequentially.

• Cost-to-income ratio improved to 30% for H1 2024, down 2 percentage points year-over-year, driven by strong income and cost control.

• Non-interest income for H1 2024 was €129 million, down 16% year-over-year, but up 5% sequentially in Q2.

• CET1 ratio at 18.3% and total capital ratio at 23.3% as of June 30, 2024.

• NPE ratio decreased to 2.8% with coverage at 85%; deposit base increased 3% year-on-year to €19.7 billion.

Outlook and guidance

• Upgraded 2024 NII guidance to c.€800 million; 2025 NII expected to exceed €700 million.

• Cost-to-income ratio expected below 35% in 2024 and below 40% in 2025.

• ROTE for 2024 expected over 19% and in the mid-teens for 2025.

• NPE ratio expected below 3% in 2024 and below 2.5% in 2025; cost of risk guided at c.40 bps for 2024.

• Distribution policy targets payout at the higher end of the 30-50% range, aiming for 50% in 2024, subject to approvals and market conditions.