Panayiotis Rougalas
Cyprus’ biggest banks are still posting hefty profits this year, even as the era of sky-high earnings seen in 2023 and 2024 begins to lose steam. The three systemic banks, Bank of Cyprus, Eurobank Limited and Alpha Bank Cyprus, reported more than €750 million in net profits for the first nine months of 2025. That’s lower than last year’s €953 million, but still far above what many in the sector expect to see again anytime soon.
There is one caveat: the €953 million figure includes the entire banking system, based on Central Bank data. Even if numbers from all other banks were added to this year’s tally, total profits would still struggle to reach even €800 million.
On Tuesday, Bank of Cyprus announced €353 million in net profits for the nine-month period, compared with €401 million a year earlier. Eurobank no longer reports separate figures for its Cypriot subsidiary, but its latest group results show €370 million in profits, a 10.3% increase on the comparable period in 2024, when group profits stood at €408 million. Last year’s numbers also included contributions from Hellenic Bank and Eurobank Cyprus.
Alpha Bank Cyprus and Astrobank, which merged earlier this year, posted a combined €42 million in profits for the first half of 2025. Based on their size and pace, that likely translates to around €60 million for the nine-month period. In the first half alone, Astrobank recorded €14 million in profits and Alpha Bank Cyprus €28 million.
Lending cushions the drop in interest income
Banks are expected to end 2025 with lower net interest income than in the bumper years of 2023 and 2024. Still, earnings remain solid thanks to strong growth in new lending, both in Cyprus and abroad, and rising income from insurance activities acquired in recent months.
With the European Central Bank keeping rates stable and inflation under control, banks are shifting their strategy. Their next push is eastward, focusing on new markets rather than major moves in interest rates.
Banks look to India and beyond
Eurobank has already applied to open representative offices in India, Abu Dhabi, Israel and Saudi Arabia. Bank of Cyprus has also filed an application to establish a presence in India, and Alpha Bank is reportedly exploring similar plans.
The push into India is still in its infancy, but Bank of Cyprus is already seeing strong lending growth across its portfolio. New lending in the first nine months reached €2.23 billion, up 31% year-on-year. The bank says growth came from every business line, especially international operations and retail lending.
In the third quarter alone, Bank of Cyprus issued:
- €249 million in loans to large businesses
- €207 million in retail loans (including €136 million in mortgages)
- €51 million to small and medium-sized enterprises
- €128 million through its international operations arm
Eurobank Group also expanded its loan book, growing organically by €3.3 billion in the first nine months of the year, €2 billion in Greece and €1.2 billion abroad. Total loan balances reached €54.3 billion at the end of September, including €8.6 billion in Cyprus and €8.7 billion in Bulgaria.
Business lending leads the Group’s portfolio at €32.6 billion, followed by €12.9 billion in mortgages and €4.8 billion in consumer loans.
Alpha Bank Group reported similar momentum, with its performing loan portfolio rising 2.2% in the third quarter to €35.7 billion. On an annual basis, performing loans grew 13%. In Greece alone, net credit expansion reached €0.7 billion in the third quarter and €2.2 billion in the first nine months, driven mainly by business loans.
*Read the Greek version on Kathimerini and Kathimerini.com.cy
