Newsroom
Cyprus’s banking sector recorded a notable decline in profitability during the first nine months of 2025, even as its balance sheet continued to expand, according to the latest data released by the Central Bank of Cyprus.
Bank profits for the January–September period fell by €237 million compared with the same period in 2024. By the end of September 2025, total profits stood at €716 million, down from €953 million a year earlier. The central bank attributes this drop mainly to reduced net interest income.
Despite weaker profitability, the sector’s total assets increased during the third quarter of the year. Assets rose by €835 million, representing a quarterly growth of 1.2%, reaching €67.8 billion at the end of September, up from €67.0 billion in June. The expansion was driven largely by higher levels of loans and advances.
Capital strength remained high, though slightly lower than in the previous quarter. The Common Equity Tier 1 (CET1) ratio declined marginally by 0.2 percentage points, falling from 26.3% in June to 26.1% in September 2025. According to the Central Bank of Cyprus, this movement reflects an increase in total risk-weighted exposures, which outweighed the parallel rise in CET1 capital.
Overall, the data point to a banking system that continues to grow in size and maintain strong capital buffers, even as earnings come under pressure.
