NICOSIA, April 13 (Reuters) – Bank of Cyprus
will resume dividend payments this year after securing approval
from the European Central Bank (ECB), the lender said on
Thursday.

The bank said it had recommended a final dividend of 0.05
euros per ordinary share and would put this to shareholders for
approval at its annual meeting on May 26.

The proposed dividend amounted to a total of 22.3 million
euros ($24.7 million) and was the equivalent to a payout ratio
of 14% on 2022 full-year adjusted recurring profit, or 31% based
on 2022 profit after tax, the bank said.

The last time Bank of Cyprus paid a dividend was in June
2011, on its 2010 profits. The bank was caught up in the
financial crisis which rattled Cyprus a decade ago – forcing the
state to borrow from the IMF and the EU, the closure of a major
bank (Laiki), and compelling Bank of Cyprus to recapitalise by
converting some savers’ deposits into equity.

“The resumption of dividend payments is a significant
milestone and represents a new chapter for the group,” Chairman
Takis Arapoglou said in a statement.

($1 = 0.9039 euros)
(Writing by Michele Kambas; Editing by David Holmes)