Friday, January 6, 2017

Bank of Cyprus to resume dividends after repayment of ELA

FT:

Bank of Cyprus, one of the biggest casualties of the eurozone financial crisis, can once again offer investors a dividend after repaying its “monstrous” emergency funding almost a year ahead of schedule.

(snip)

ELA [Emergency Liquidity Assistance] meant there was no chance a dividend could be paid,” said John Hourican, who became chief executive of Bank of Cyprus in late 2013. “This allows us to begin discussions of normal capital distributions over the coming years.”

(snip)


In the three years since its near collapse, Bank of Cyprus raised €1bn by selling shares, and has disposed of international assets as it rebuilt confidence among deposit holders. “A whole pile of little things have added up to what is a really important and big milestone for the bank,” Mr Hourican said.

A whole lot of little things have been going right at the bank. Yes non performing loans are still very high but the problem is being whittled away. If the economy continues to expand as projected than this will definitely help that process. 

You can still buy this bank for almost half of what billionaires like Wilbur Ross paid several years ago when the bank sold shares to recapitalize.  

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