16/09/2004 08:22
The allocation of a dividend by the banks for 2004 is possible, Central Bank Governor, Christodoulos Christodoulou said on Thursday. On his statements to StockWatch, Mr. Christodoulou said that the banks’ situation is better this year. “The three-year program of consolidation of their capital base and the restriction of their bad debts has been fruitful”, he said.
For the past few years, the Central Bank had recommended the banks not to grant a dividend due to their capital needs from their expansion in Greece and the need for a consolidation of their portfolios.
“I am more optimistic and positive on the granting of final dividend”, Mr. Christodoulou told StockWatch.
The last time that the banks allocated a dividend was in May 2002 for 2001. Their decision not to grant a dividend for the next few years cost millions of pounds to the Cyprus economy per annum. In 1996 – 2002, the banks returned to their shareholders profits of £380 million.
"We have delayed"
The banks, however, appeared quite reserved on the issue. In their multi-page announcements and the presentation of their six-month results, they made no mention of dividends. “Our efforts are moving towards this direction. We have delayed”, a bank official said.
It is noted that the Bank of Cyprus and the Popular Bank Chairmen, Solon Triantafyllides and Kikis Lazarides had stated that if the first quarter results show improvement, the banks will allocate a dividend for 2004.
Analysts: Final dividend by BOC and CPB
SFS analyst, Constantinos Kypraios anticipates that the Bank of Cyprus and the Popular Bank will grant a final dividend for 2004. The Hellenic Bank’s reserves however will not allow the allocation of a dividend in 2004 or 2005. CISCO analyst, Marios Soupasiis said that any differentiation in the dividend policy of the banks will appear after the first quarter of 2005. “The earliest in March and the latest in November 2005”, he added.
If banks proceed to the allocation of a dividend, how much do we expect? Mr. Kypraios said that it is unlikely that the banks will give more than 50% of their profits. This entails a dividend between 3 and 5 cents per share. Mr. Soupasiis, on the other hand, believes that the dividend will be between 1 and 3 cents per share. “It is possible that the dividend will be even lower, if the Central Bank requests the strengthening of their reserves”, Mr. Kypraios concluded.
The revenues of the four CSE-listed banks in the first half of 2004 increased by 17%, while profits showed an improvement of 121% compared to 2003.
For the past few years, the Central Bank had recommended the banks not to grant a dividend due to their capital needs from their expansion in Greece and the need for a consolidation of their portfolios.
“I am more optimistic and positive on the granting of final dividend”, Mr. Christodoulou told StockWatch.
The last time that the banks allocated a dividend was in May 2002 for 2001. Their decision not to grant a dividend for the next few years cost millions of pounds to the Cyprus economy per annum. In 1996 – 2002, the banks returned to their shareholders profits of £380 million.
"We have delayed"
The banks, however, appeared quite reserved on the issue. In their multi-page announcements and the presentation of their six-month results, they made no mention of dividends. “Our efforts are moving towards this direction. We have delayed”, a bank official said.
It is noted that the Bank of Cyprus and the Popular Bank Chairmen, Solon Triantafyllides and Kikis Lazarides had stated that if the first quarter results show improvement, the banks will allocate a dividend for 2004.
Analysts: Final dividend by BOC and CPB
SFS analyst, Constantinos Kypraios anticipates that the Bank of Cyprus and the Popular Bank will grant a final dividend for 2004. The Hellenic Bank’s reserves however will not allow the allocation of a dividend in 2004 or 2005. CISCO analyst, Marios Soupasiis said that any differentiation in the dividend policy of the banks will appear after the first quarter of 2005. “The earliest in March and the latest in November 2005”, he added.
If banks proceed to the allocation of a dividend, how much do we expect? Mr. Kypraios said that it is unlikely that the banks will give more than 50% of their profits. This entails a dividend between 3 and 5 cents per share. Mr. Soupasiis, on the other hand, believes that the dividend will be between 1 and 3 cents per share. “It is possible that the dividend will be even lower, if the Central Bank requests the strengthening of their reserves”, Mr. Kypraios concluded.
The revenues of the four CSE-listed banks in the first half of 2004 increased by 17%, while profits showed an improvement of 121% compared to 2003.
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