Bank Of Cyprus Holdings Public Limited Company (BOCH) Q4 2024 earnings summary

Executive summary

• Achieved profit after tax of €508 million for 2024, up 4–5% year-over-year, with ROTE above 20% for the second consecutive year and EPS of €1.14.

• Distributed €241 million to shareholders in 2024, including €211 million cash dividend and €30 million share buyback, raising cumulative distributions to €400 million since 2022, with a proposed 50% payout ratio and 12% yield.

• Upgraded distribution policy for 2025 to 50–70% payout ratio, with potential for interim dividends.

• Maintained leading market positions in loans (43%) and deposits (37%) in Cyprus, with a diversified business model including insurance and payment solutions.

• Moved stock listing from London to Athens in September 2024, enhancing liquidity and visibility.

Financial highlights

• Net interest income (NII) for 2024 was €822 million, up 4% year-over-year; NIM at 3.53%.

• Cost-to-income ratio improved to 34% for 2024, among the lowest in Europe, but expected to rise to around 40% in 2025.

• Gross performing loan book grew 4% year-over-year to €10.2 billion; record new loans reached €2.4 billion, up 20%.

• Customer deposits increased 6% year-over-year to €20.5 billion, with deposit costs remaining low at 34 basis points.

• Non-interest income declined 9% year-over-year to €272 million, mainly due to lower insurance results and transactional fees.

Outlook and guidance

• Targeting high-teens ROTE on a 15% CET1 ratio and mid-teens ROTE on reported equity for 2025 and beyond, assuming normalized 2% interest rates.

• Net interest income for 2025 expected below €700 million due to lower rates, partially offset by 4% loan growth and increased hedging.

• Loan book expected to grow around 4% per annum, with international expansion, especially in Greece.

• Fee and commission income targeted to grow 4% per annum; insurance income expected to grow over 6% for Eurolife and 6% for Genikes.

• Cost of risk guided towards the lower end of 40–50 basis points.