Bank of Cyprus makes electronic dividend payments mandatory

The Bank of Cyprus (BoC) reiterated on Friday that it will stop paying dividends by cheque, with all future payments to shareholders holding their interests indirectly through depositary interests on the Cyprus Stock Exchange (CSE) to be made exclusively by electronic transfer. The change, announced by Bank of Cyprus Holdings Public Limited Company following earlier announcements on July 10, 2026 and August 4, 2026, will apply from the company’s €0.24 interim dividend per ordinary share, which is due to be paid on October 21, 2026. Shareholders entitled to the interim dividend will need to be on the company’s register of members on September 22, 2026, which is the record date. Shareholders who have not yet provided valid bank account details have been asked to do so promptly and no later than September 22. The company said that if valid bank account details had not been received by the record date, the dividend payment would not be made at that time, with the money retained in a company account for six years. Retained dividend amounts will not accrue interest during that period, the announcement added. The move to mandatory electronic payments follows the approval of resolution 15 at the company’s annual general meeting on May 15, 2026, which amended the company’s articles of association. The dividend paid on June 24, 2026 was therefore the last dividend to be paid by cheque. The company said the transition to electronic payments would allow shareholders to receive cleared funds more quickly on the payment date, while eliminating delays associated with cheque processing. It would also reduce the risks of cheques being lost, stolen or misdelivered, while lowering administrative and operational costs. The change was also intended to support the group’s sustainability objectives by reducing paper-based processes. Electronic dividend payments are considered a secure and widely used payment method, with shareholder bank account details used solely for dividend payments and handled in accordance with applicable data protection and security requirements, the bank explained. Shareholders will be able to nominate either a Bank of Cyprus account or an account held with another financial institution, with all dividend payments made in euro. Natural-person shareholders who are Bank of Cyprus 1bank subscribers can submit their payment instructions through internet banking by selecting Profile and then Dividend Payments. They can also use the Bank of Cyprus mobile application by selecting Menu, Personal Information and then Dividend Payments. A further option is to send a message through 1bank internet banking or the Bank of Cyprus mobile application. The internet banking and mobile application options are available only to shareholders who have been successfully identified as Bank of Cyprus customers and 1bank subscribers. Other shareholders, including legal entities, non-1bank subscribers and people or organisations that are not Bank of Cyprus customers, can instead complete the relevant authorisation form. Forms are available through the company’s website and can be submitted at any Bank of Cyprus branch or in accordance with the instructions provided on the form. Separate forms are available for payments into Bank of Cyprus accounts and accounts held with other banks. The company has encouraged shareholders to submit their bank details as soon as possible to avoid delays in receiving future dividends. It also warned that unclaimed dividend amounts could ultimately be forfeited in accordance with the company’s articles of association if the required information is not provided within the applicable period. The company said the six-year retention period applied to dividend amounts for shareholders who had not supplied valid bank account details.