Nicosia, Cyprus. Bank of Cyprus on Monday presented its first-quarter 2026 financial results, with CEO Panicos Nicolaou citing the resilience of the Cypriot economy and signalling stronger shareholder returns in the coming years.
Cypriot economy cited as resilient amid instability
Speaking at a press conference, Nicolaou said that despite international crises and geopolitical instability, the Cypriot economy continues to record strong growth rates and compares favourably with other eurozone economies.
“There is economic activity even during periods of crisis,” Nicolaou said.
He added that the Cypriot economy has sufficient resilience and adequate buffers to withstand possible future disruptions.
Dividend policy targets upper end of payout range from 2026
Nicolaou said that from 2026 onwards, the bank’s objective is to operate at the upper end of its ordinary dividend payout range, equivalent to 70 per cent of profits.
He said the bank will also annually examine the possibility of additional distributions in the range of 20 per cent to 30 per cent, depending on conditions and capital requirements.
He added that the bank’s future policy foresees ordinary distributions of between 50 per cent and 70 per cent of profits, and that an additional distribution is planned this year.
According to Nicolaou, the total capital allocated for the 2025 dividend has already been accounted for and amounts to €305 million.
CEO addresses questions on payouts during instability
Responding to questions on dividend distributions during a period of heightened instability, Nicolaou said the payout levels are not higher than the eurozone average.
How do you assess Bank of Cyprus’s plan to target the upper end of its dividend payout range from 2026?
