dividend payout — The Bank of Cyprus (BoC) has made headlines as shareholders approved a significant dividend payout of €0.50 per share for the 2025 financial year, the largest since the bank resumed dividend distributions in 2022.
This decision came during the annual general meeting held on May 15, where it was confirmed that the total dividend for the year will be €0.70 per share. This amount includes an interim dividend of €0.20 that was already disbursed in October 2025.
Dividend payout: Significant Financial Impact
The approved total distribution amounts to an impressive €305 million, marking a year-on-year increase of approximately 25 per cent. This payout corresponds to a payout ratio of 70 per cent, placing BoC firmly at the upper end of its stated distribution policy for 2025.
Key Dates for Shareholders
For those looking to benefit from this dividend, the shares will go ex-dividend on May 25, 2026, with a record date set for May 26, 2026. Payments are scheduled to be distributed on June 24, 2026, to shareholders who are listed on the company’s register as of the record date.
Payment Methods Explained
Shareholders can expect different payment arrangements depending on how they hold their shares. For those holding shares through the Cyprus Stock Exchange (CSE), payments will be made via electronic transfer or cheque based on the details in the central securities registry. Shareholders using Euronext Athens or the Euroclear system will receive their payments through their respective participants, with Euroclear Bank acting as the paying agent.
Meanwhile, shareholders registered directly on the company’s books will receive their dividends through either cheque or electronic transfer, facilitated by MUFG Corporate Markets Trustees (Nominees) Limited.
Changes to Payment Procedures
In an important development, the bank has notified depositary interest holders that this will be the last dividend for which payments may be made by cheque. Future distributions are expected to be handled exclusively via electronic transfer, following amendments made to the company’s articles of association approved at the AGM.
Under the new framework, the board has the discretion to require electronic payments and may retain dividend amounts if shareholders have not provided valid bank account details. If such amounts remain unclaimed for six years, they may be forfeited.
Shareholder Responsibilities
The bank has urged shareholders who have not yet submitted their bank details to do so promptly to avoid delays or potential loss of future payments. Additionally, it has stated that dividend payments of €2.00 or less will not be made unless specifically requested by the shareholder, along with the necessary account information.
Tax Implications for Shareholders
On the taxation front, the bank confirmed that the Special Defence Contribution (SDC) applies at a rate of 17 per cent, as mandated by Cyprus tax authorities. For Cyprus tax resident and domiciled individuals holding depositary interests, this tax will be withheld at source, eliminating any further SDC liability on the dividend. Conversely, other shareholders are responsible for fulfilling any applicable tax obligations based on their individual jurisdictions.
The bank emphasised that the outlined tax treatment does not affect any additional obligations, such as contributions to the General Healthcare System (GHS). The announcement of this record dividend marks a significant moment for the Bank of Cyprus and its shareholders, reflecting the institution’s robust financial performance and commitment to returning value to its investors.
