Newsroom
Bank of Cyprus reported profits of €353 million for the first nine months of 2025, slightly below the €401 million earned in the same period last year but still showing solid results in a cooling economy.
For the third quarter alone, profits reached €118 million, nearly unchanged from 2024, reflecting what the bank called “resilient performance” despite falling interest rates.
Interest income, which makes up the bulk of the bank’s earnings, dropped 12% year-on-year to €548 million, mainly due to lower benchmark rates. However, the bank managed to offset part of that decline through hedging, more deposits, and loan growth.
Non-interest income, which includes fees, commissions, insurance operations, and real estate sales, rose 7% to €219 million, thanks to higher fee income and one-off insurance compensation.
Capital, loans, and deposits on the rise
The bank remains financially strong, with a Common Equity Tier 1 capital ratio of 20.5% and total capital adequacy of 25.4%, among the highest in Europe.
New loans reached €2.2 billion between January and September, up 31% year-on-year. Most of the lending went to large businesses and international clients, while lending in Cyprus slowed slightly during the third quarter.
Deposits continued to climb, reaching €21.4 billion by the end of September, up 7% from last year, giving the bank a liquidity coverage ratio of 313%, more than triple the regulatory minimum.
Fewer bad loans, tighter costs
The cleanup of bad loans also continued. Non-performing loans fell sharply to just 1.2% of total lending, a dramatic improvement from the bad-loan crisis years that once haunted Cyprus’ banks.
The cost-to-income ratio edged up slightly to 35%, reflecting lower overall income due to rate cuts, though staff costs stayed under control.
Looking ahead
The Bank of Cyprus confirmed it will maintain its updated dividend policy, returning between 50% and 70% of adjusted profits to shareholders through cash dividends and share buybacks, up from the previous 30–50% range.
Despite lower interest rates, the country’s biggest lender says its balance sheet remains strong, liquidity high, and lending momentum steady.
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