NewsLocalCypriot banks closer to returning to dividend distribution policy

Cypriot banks closer to returning to dividend distribution policy

The increase in interest rates has been much faster and stronger than was expected and the European banking sector is now in a pretty strong position, according to the European Central Bank’s Supervisory Board Chair Andrea Enria.

And this could mean that – after 11 years – shareholders of Cypriot banks have increased chances to the distribution of dividends from recorded profits, Philenews reported on Thursday.

As a matter of fact, Bank of Cyprus CEO Panicos Nikolaou on Friday is expected to refer extensively on the possible return of distribution of dividends within the framework of the lender’s announced results for the year’s first nine months.

However, nothing is certain since the European supervisors have also warned that it is their task to instill a good degree of prudence in banks’ behaviours.

Both in provisioning behavior, he added, and in the point that they are now asking banks to focus on, that is, capital trajectories.

“We asked banks to send us their capital trajectories again and on this basis we will engage them in a dialogue on distribution,” Enria also said in a recent interview.

 

 

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