The Bank of Cyprus has become the first bank in Cyprus and Greece to receive approval from the European Central Bank (ECB) to pay dividends, it announced on Monday. The lender is expected to resume paying dividends to its shareholders after 12 years.

Following the ECB’s approval last Thursday, the Bank of Cyprus’ board of directors will propose to the shareholders for approval at the Annual General Meeting (AGM), which will take place on May 26, the payment of a final dividend of €0.05 per ordinary share from the profits for 2022.

The proposed dividend totals €22.3 million and is equivalent to 14 per cent of adjusted earnings before non-recurring items for 2022, or 31 per cent of earnings after taxation for the same year, the bank said.

“The proposed Dividend reflects the resumption of dividend payments after 12 years and supports the group’s position as a strong diversified organisation, capable of providing a stable return to shareholders,” it added.

The dividend, which is subject to approval by the AGM, will be paid in cash on June 16 to shareholders registered in the shareholder register on May 5, while the Ex-Dividend date has been set as May 4. Further information will be given in the AGM Invitation to be published on or about April 25.

In addition, the bank said its board has also approved the group’s dividend policy, the objective of which “is to provide a stable return to shareholders”.

Commenting on the decision, group chairman Takis Arapoglou emphasised that “the resumption of dividend payments is an important milestone and marks a new chapter for the group.”