Bank Of Cyprus Holdings Public Limited Company (BOCH) H2 2024 earnings summary

Executive summary

• Delivered strong financial results in 2024, with profit after tax of €508 million, up 4% year-over-year, and ROTE of 21.4%.

• Proposed €241 million distribution (cash dividend and share buyback), representing a 50% payout ratio.

• Maintained robust capital and liquidity positions, exceeding regulatory requirements.

• Continued digital transformation and ESG integration, with significant progress in sustainability reporting.

Financial highlights

• Net interest income rose to €822 million (up 4% year-over-year), driven by higher interest rates and increased liquidity.

• Total income reached €1,094 million, stable year-over-year.

• Operating profit was €688 million, with a cost-to-income ratio of 37% (34% excluding special levies).

• Loan credit losses fell to €30 million (down 52% year-over-year), and cost of risk improved to 0.30%.

• Profit after tax attributable to owners was €508 million; basic EPS €1.14.

• Tangible book value per share increased to €5.77 (up 17% year-over-year).

Outlook and guidance

• Targeting high-teens ROTE on 15% CET1 ratio for 2025 and beyond.

• Net interest income expected below €700 million in 2025 due to anticipated interest rate normalization.

• Loan book projected to grow by ~4% in 2025; non-interest income to grow by ~4% per annum.

• Cost-to-income ratio (excluding levies) expected at ~40% for 2025.

• NPE ratio expected to remain below 2%, with cost of risk at 40-50 bps.