The Bank of Cyprus announced post-tax profits of €487 million for the year 2023, marking a milestone year, according to the Group's CEO, Panicos Nicolaou. He emphasized the strength and satisfactory capital adequacy of the institution.

Commenting on the financial results, CEO Panicos Nicolaou emphasized that 2023 was a landmark year for the Group, signifying the start of a new era characterized by strength and satisfactory capital adequacy. He noted the strong financial and operational performance, with profits of €487 million benefiting from rising interest rates and high liquidity, while maintaining cost base control amidst inflationary pressures and a strong loan portfolio.

Nicolaou highlighted the diverse business model, as evidenced by non-interest income, which significantly contributes to profitability and covers nearly 90% of total operating expenses. He also pointed out the achievement of a 24.8% Return on Tangible Equity (ROTE), significantly exceeding the targets set for 2023, and driving capital generation of approximately 480 basis points.

According to Nicolaou, the CET1 ratio stood at 18.7% as of 31 December 2023 before dividend provision. The CET1 ratio, calculated for supervisory purposes and including dividend provision, reached 16.5%.

He added that the tangible book value per share improved by 24% year-over-year to €4.93, reflecting accelerated value creation for shareholders.

Regarding the Cypriot economy, Nicolaou mentioned its continued strength, with growth of 2.3% in Q4 2023, demonstrating resilience to external shocks.

In this favorable environment, he concluded, "We start 2024 from a position of strength. We will continue to make progress in areas under our control and remain confident in achieving a Return on Tangible Equity (ROTE) above 17% for 2024, with mid-teen levels in a normalized interest rate environment (2-2.5%). Recognizing the importance of delivering returns to shareholders, we maintain our dividend policy of conservatively progressive payout ratio between 30-50%. We continue to implement our strategy, focusing on supporting our customers, creating value for our shareholders, and supporting the growth of the Cypriot economy."