UPDATE 1-Bank of Cyprus H1 net profit up 10 pct

* H1 net rises 10 pct to 163 million euros ($207.4 million)

* Proposes cash/share dividend

* Sticks to 2010 guidance of 300-400 mln euro net profit

(Adds detail)

NICOSIA, Aug 30 (Reuters) - Bank of Cyprus BOC.CY (BOCr.AT) posted a 10 percent increase in first-half net profit as earnings from its Greek operations more than tripled and its Russian business swung to profit.

Cyprus's largest lender stuck to its 2010 outlook for profit of between 300 million and 400 million euros and said it would offer shareholders an interim dividend in cash and shares.

"The group expects that net profit will fluctuate between 300 and 400 million euros, with a positive contribution from all the markets within which it operates," the lender said of the full-year outlook.

Despite the deep economic crisis in debt-hit Greece, the Cypriot lender said net profits from its Greek operations rose 268 percent on the year to 25 million euros.

The bank's loan portfolio in that country is mainly made up of small to medium-sized businesses and homeowners.

Russia, where the bank launched fully fledged banking operations in 2008, saw a profit of 3 million euros after a loss in the first half of last year.

Net interest income rose 28 percent to 496 million and its pretax profit rose 10 percent to 180 million euros.

The interim dividend in cash was set at 0.06 cents per share, combined with a distribution of shares at 0.50 cents per share at the issue price of 3.25 euros, the bank said.

Second-quarter group net of 82 million euros was flat versus the first quarter. Net interest income rose 5 percent in the second qyarter and pre-tax profit fell 3 percent. (Writing by Michele Kambas, editing by Michael Shields)