WOOD Flash – Bank of Cyprus: 4Q23 highlights and 2024E guidance
Bank of Cyprus has announced a decent EUR 138m of net income for 4Q23, which brought the full-year bottom line to EUR 487m. Although some pressures on earnings is starting to emerge, with peaking NIMs in 4Q23, we believe that BOCH’s market valuation (0.5x P/TBV and 2.9x P/E, on our 2024E estimates) is still implying a too abrupt normalisation from the current >20% ROTE levels. Management's mid-teens ROTE guidance for a normalised ECB deposit rate backdrop of 2-2.5% still stands. As long as the rates do not go back to 0% and the bank can return capital (50% dividend accrual in the 2023 CET1), we believe that the 10%+ dividend yields implied by the current valuation are still an attractive investment proposition. The bank can also act as a hedge for a "higher for longer" scenario. We rate BOCH a BUY, with a price target (PT) of GBP 3.2/share.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.