Bank of Cyprus published preliminary financial results for 2025. According to the new report, the country’s largest financial institution demonstrates steady growth, a record volume of new lending, and high profitability. Net profit after tax amounted to 481.1 million euros, confirming the strong position of Bank of Cyprus in the banking sector of Cyprus.
Record lending and deposit growth
In 2025, the volume of new lending reached a historic maximum of 3 billion euros, which is 23% higher compared to the previous year. The performing loan portfolio increased by 8% year-on-year and amounted to 10.9 billion euros. The deposit base, predominantly retail, also grew by 8% and reached 22.2 billion euros.
Bank of Cyprus exceeded its own target for loan portfolio growth by approximately 4%, supported by active domestic business activity and the expansion of its international business direction. A significant contribution came from the corporate sector, where demand for financing remains high.
High profitability and efficiency
Net profit after tax amounted to 481.1 million euros, of which 128 million euros were generated in the fourth quarter of 2025. Return on tangible equity (ROTE) reached 18.6%, which is considered one of the best indicators in the region’s banking sector. Basic earnings per share amounted to 1.1 euros, and the cost-to-income ratio remained at a low level of 37%, indicating effective cost management. Despite lower interest rates in the eurozone, net interest income demonstrated resilience due to the growth in lending and deposit volumes.
Liquidity and asset quality
The quality of the Bank of Cyprus loan portfolio remains high. The share of non-performing loans decreased to 1.2% of the total loan volume, and credit loss expenses amounted to 33 basis points. The liquidity coverage ratio reached 321%, with a liquidity surplus of 9.2 billion euros, creating a significant buffer of financial stability.
Capital and dividends to shareholders
The Common Equity Tier 1 (CET1) ratio reached 21%, and the total capital adequacy ratio amounted to 25.9% after accounting for dividend payments. Organic capital generation amounted to 436 basis points. Tangible book value per share increased by 6% and reached 6.1 euros.
The bank announced the distribution of 70% of its 2025 profit, corresponding to the upper limit of its dividend policy. The total amount of dividends will amount to 305 million euros and will be paid entirely in cash. The final dividend will be 0.5 euros per ordinary share, and the total annual payout reached 0.7 euros per share. Over the past two years, the total amount distributed has approached 550 million euros, highlighting the bank’s commitment to generating high returns for shareholders.
Economic context and outlook for 2026
Bank of Cyprus operates in the context of a resilient Cypriot economy, which continues to outpace the average growth rates of the eurozone. According to the latest forecasts of the Ministry of Finance, real GDP growth in Cyprus in 2026 is expected at 3.1%, while 1.2% is forecast for the eurozone.
Against the backdrop of tourism recovery, growth in real estate investment, and the development of international services, the banking sector remains one of the key drivers of the country’s economic activity.
The financial results of 2025 confirm that Bank of Cyprus remains a systemically important player in the market, serving about three quarters of the country’s population and demonstrating performance comparable to leading European banks.