WOOD Flash – Bank of Cyprus: 2Q25 results highlights
Bank of Cyprus (BOCH) has reported EUR 118m in 2Q25 net income, 5% ahead of our EUR 113m estimate for the quarter. The 2Q25 bottom line brought the 6M25 net income to EUR 235m, suggesting meaningful upside risk for our EUR 393m 2025E estimate. Everything else being equal, we calculate that, if the sequential decline in the NII during 3Q25E and 4Q25E stays limited to the 2% qoq drop seen in 2Q25, there would be 10% upside for our 2025E net income estimate (pre-AT1 coupons). In 1H25, the bank also reported a strong 18% ROTE, despite the 2Q25 CET1 exceeding 20%. Loans also posted 2% qoq growth (5% ytd). Management announced a EUR 0.2/share (EUR 88m) dividend, to be paid on 20 October and made its 70% payout target from the 2025E net income firm (also 70% in our estimates). Based on a 70% payout ratio, we calculate a 9% capital return yield from the 2025E net income. Except for the meagre 2% yoy growth in fees, we have no complaints about 2Q25 or 1H25. We rate BOCH a BUY, with a PT of EUR 7.15. The bank is trading at 1.1x P/TBV and 8.0x P/E on our 2025E estimates.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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