Bank of Cyprus Holdings PLC on Tuesday said profit and turnover both increased in the first quarter, and it expects to meet full year targets, partly thanks to the country’s economy growing ‘significantly above’ the eurozone average.

The Nicosia-based lender reported pretax profit of €113.1 million in the first quarter of 2023, up from €22.3 million a year before.

Bank of Cyprus said turnover during the quarter increased to €300.2 million from €201.3 million a year prior. Net interest income more than doubled to €162.3 million from €71.4 million.

Interest expense increased 34% to €24.6 million from €18.4 million year-on-year. Staff costs decreased 9.6% to €45.6 million from €50.5 million and other operating expenses decreased 2.8% to €35.3 million from €36.2 million.

Bank of Cyprus had in April proposed a final dividend of €0.05 per share for 2022 amounting to €22.3 million in total. It had not previously declared a dividend since June 2011.

Bank of Cyprus said the Cypriot economy is anticipated to grow by around 2.8% this year, surpassing the eurozone average. It expects to meet its full year targets, which include net interest income increasing between 40% and 50% to between €520 and €550 million.

‘2023 is providing evidence of the group’s transformation into a strong, diversified, well-capitalised and sustainably profitable banking and financial services group,’ commented Chief Executive Panicos Nicolaou.

‘We have closed the chapter on the restructuring effort of recent years and have started a new chapter in which we aim to provide sustainable returns to shareholders, while continuing to serve our customers, support the Cypriot economy and contribute to the community. Our positive set of financial results this quarter provides the foundations to help us deliver against our targets.’

Bank of Cyprus shares were up 6.6% at 227.00 pence in London on Tuesday.

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