Panayiotis Rougalas
Cyprus remains a strong source of bank profits, with two of the three banks whose parent companies are based in Greece reporting impressive results. Their decisions to invest heavily in the island have so far proved highly profitable, as their results for the first nine months of 2026 confirm.
Eurobank and Alpha Bank reported a combined €435 million in profits from their Cyprus operations. To put that into perspective, the two banks’ total combined profits for the period were just under €2 billion—specifically, €1.94 billion. Cyprus therefore accounted for 22%, or slightly more than a fifth, of their total earnings, a notable contribution for an island of its size.
The two banks are expanding their presence in Cyprus, where their operations generated a combined €435 million in profits in the first nine months.
Eurobank’s bet on Cyprus has paid off proportionately more than Alpha Bank’s. Its Cyprus operations generated approximately 30% of its total nine-month profits, compared with 10% for Alpha Bank.
Eurobank reported total profits of €1.16 billion on Thursday, with adjusted net profits from Cyprus reaching €356 million. Alpha Bank’s results, announced Friday, showed total profits of €779 million, including €79 million in adjusted net profits from Cyprus.
Looking more closely at Eurobank’s results, adjusted net profits from operations outside Greece remained almost unchanged at €555 million, contributing 45.9% of the group’s profitability. The bank said adjusted net profits in Cyprus fell 3.9% year over year to €356 million, while those in Bulgaria rose 9.2% to €182 million.
Total assets stood at €114.2 billion on Sept. 30, 2026, including €66.9 billion in Greece, €29.4 billion in Cyprus and €14.8 billion in Bulgaria.
The bank said lending grew organically by €3.8 billion in the first nine months, with €2 billion of that growth coming from Greece and €1.8 billion from operations elsewhere.
Total outstanding loans, before provisions for potential losses, reached €59.1 billion at the end of September. Of that amount, €38.6 billion was in Greece, €9.3 billion in Cyprus and €10.1 billion in Bulgaria.
Across the group, business loans amounted to €37.1 billion, mortgages to €13.1 billion and consumer loans to €5.3 billion.
Customer deposits increased by €4.7 billion during the first nine months to €87.2 billion. Greece accounted for €48.5 billion, Cyprus for €24.3 billion and Bulgaria for €11.7 billion.
Alpha Bank, meanwhile, reported net profits after tax of €57 million from its international operations, down 16% year over year. Adjusted profits after tax rose 13% to €79 million. Its results included a €17.5 million provision for the voluntary redundancy scheme in Cyprus.
Net interest income increased 64% year over year, while fee income rose 65%. Recurring operating expenses climbed 52%, reflecting higher staff costs and general expenses.
Loans, after accumulated provisions, stood at €2.9 billion, while deposits reached €6.6 billion. The return on tangible equity—a measure of profitability relative to shareholders’ tangible capital—was 12.9% for the nine-month period, Alpha Bank said.
Major investments
Both banks have backed their confidence in Cyprus with substantial investments, acquiring banks and insurance businesses.
Eurobank led the way, investing €1.3 billion in the acquisition of Hellenic Bank. It also expanded its reach with a representative office in India that has Cypriot “DNA.”
Alongside its banking investments, Eurobank brought together CNP Cyprus’ insurance businesses and Hellenic Bank’s two insurers, Hellenic Life and Pancyprian Insurance. The combined operation was subsequently renamed ERB Insurance.
Canada’s Fairfax, a major Eurobank shareholder, has announced the acquisition of a 45% stake in ERB Insurance, with an option to take full ownership later.
Alpha Bank acquired AstroBank for €200 million, strengthening its local subsidiary, Alpha Bank Cyprus, and making it the island’s third systemic bank alongside Bank of Cyprus and Eurobank.
It also invested in insurance, acquiring Altius Insurance and a stake in Universal Life. In practice, it strategically combined the two companies’ insurance operations in the local market to become one of the sector’s major players.
Alpha Bank holds a majority stake in the combined company.
