Bank Of Cyprus (BOCHGR) H2 2024 TU earnings summary

Executive summary

• Achieved record net profit of over €500 million in 2024, with EPS of €1.14 up 5% year-over-year and ROTE above 20% for two consecutive years.

• Maintained leading market positions in loans (43%) and deposits (37%) in Cyprus, with strong growth in both segments.

• 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, and increased payout policy to 50–70%.

• Successfully moved stock listing from London to Athens, enhancing liquidity and visibility.

• NPE ratio reduced to 1.9% with coverage at 111%; cost of risk at 30 bps, reflecting robust asset quality.

Financial highlights

• Net profit after tax reached €508 million, with EPS of €1.14, up 5% year-over-year.

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

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

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

• Cost-to-income ratio improved to 34% for 2024, among the lowest in Europe.

Outlook and guidance

• Targeting high-teens ROTE on a 15% CET1 ratio for 2025 and beyond, with distribution policy upgraded to 50–70% payout.

• Organic CET1 capital generation expected at 300 basis points in 2025, supporting a 50–70% payout.

• Net interest income expected below €700 million in 2025 due to lower rates, but loan book growth of around 4% per annum and increased hedging are expected.

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

• Cost-to-income ratio expected at around 40% in 2025; cost of risk towards lower end of 40–50 bps.