Distributions
Distribution Policy
The Group aims to provide a sustainable return to shareholders. Simultaneously, it is committed to maintain a healthy capital, above the prevailing requirements whilst maintaining a comfortable buffer.
Distributions are expected to build prudently and progressively over time, towards a payout ratio in the range of 30-50% of the Group’s adjusted recurring profitability1,including cash dividends and share buybacks. The distribution policy takes into consideration market conditions as well as the outcome of capital and liquidity planning.
Cash Dividend
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Share Buybacks
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1The Group’s profit after tax before non-recurring items (attributable to the owners of the Group) taking into account distributions under other equity instruments such as the annual AT1 coupon.
Treatment of Sanctioned Shareholders
Bank of Cyprus Holdings PLC ("BOCH") is committed to legal compliance and risk management in all aspects of its corporate governance framework as an EU-organized company listed on the London Stock Exchange and the Cyprus Stock Exchange.
BOCH has announced on 20 March 2024 that it will be recommending to the shareholders of BOCH for approval at the Annual General Meeting that will be held on 17 May 2024 of a final dividend of €0.25 per ordinary share. In paying this dividend, BOCH intends to comply with anti-money laundering and sanctions laws, including those of the European Union, United Kingdom and United States and will take appropriate steps with the applicable depositaries, custodians and/or other relevant parties in respect of such compliance.
BOCH notes Market Notices N18/22 and N03/18 and plans to convey to relevant member firms, nominees and third-party service providers its compliance expectations that is consistent with applicable law and BOCH’s commitment to compliance.
Shareholders who are exempted from Special Defence Contribution and GHS
Pursuant to the provisions of the Cyprus Tax Legislation and the Health Insurance System (“GHS”) Law, income from securities listed on recognised stock exchanges is subject to SDC as well as GHS contribution with respect to those of the CSE Shareholders who are natural persons unless such holders are entitled to an exemption.
CSE Shareholders who are natural persons and who fall under the category of persons being entitled to an exemption from the deduction of SDC and/or GHS contribution, should complete the relevant Declaration for Exemption of an Individual, (TD624NP) (the ‘Tax Declaration’) available on the website of the Tax Department of the Republic of Cyprus (Tax Department/Special Defence Contribution), so that no deduction of the relevant contribution is made from the payable dividend.
The completed and signed Tax Declaration must be received by the Company at least 10 working days prior to the next dividend payment date. In case where the CSE Shareholders have a joint Investor Share Code, then each CSE Shareholder must sign and submit a separate Tax Declaration. The Tax Declaration must be sent, by post, to Bank of Cyprus Public Company Limited, 51 Stassinos street, 2002 Strovolos, Nicosia, Cyprus, (for the attention of Investor Relations & ESG) or by email to shares@bankofcyprus.com or by fax to +357 22 120245. If the Tax Declaration is not received on time and/or the identification is not possible, SDC will be deducted from the dividend paid while the corresponding deduction for the GHS contribution will be made in accordance with the applicable legislation.
Documents Relating to Final 2023 Distributions
Authorisation Form for BOC (Authorisation for the direct credit of dividends in a bank account maintained by the Investor/s with Bank of Cyprus Public Company Ltd)
Authorisation Form for Other Financial Institutions (Authorisation for the direct credit of dividends in a bank account maintained by the Investor/s with Other Financial Institutions)