Bank of Cyprus has published its financial results for the third quarter of 2025, reporting €118 million in after-tax profit, matching the previous quarter’s performance. For the first nine months of the year, net profit reached €353 million, confirming the bank’s stable momentum and high operational efficiency.
Management noted that these results demonstrate the bank’s ability to maintain strong profitability even in an environment of declining interest rates, while preserving a robust capital structure and low credit-risk levels.
Active Lending and Growth in Deposits
From January to September 2025, new lending reached €2.2 billion, a 31% increase compared with the previous year. Most of this growth came from business loans and the international corporate segment, indicating healthy demand from companies and entrepreneurs.
Performing loans rose to €10.71 billion, up 6% since the beginning of the year—surpassing the bank’s internal forecasts. At the same time, the deposit base grew by 7%, reaching €21.5 billion as of September 30, 2025, with retail clients contributing the majority of deposits.
Strong Capitalization and Low Risk Levels
The non-performing loan (NPL) ratio decreased to 1.2%, one of the best results among European banks. The loan-loss charge stood at 35 basis points, highlighting the bank’s effective risk-management system.
Bank of Cyprus maintains an exceptionally strong capital position:
- CET1 ratio: 20.5%
- Total capital adequacy ratio: 25.4% (including Q3 profit)
These indicators provide solid protection against market volatility and allow the bank to continue supporting the economy through active financing.
Shareholder Returns and Dividend Policy
In October 2025, the bank paid an interim dividend of €0.20 per share, bringing total dividends for the year to €0.68 per share. The target payout ratio of 70% remains one of the highest among European banks.
Return on tangible equity (ROTE) for the first nine months reached 18.4%, and with strong Q4 expectations, the bank anticipates this figure will exceed 20% for full-year 2025. Book value per share increased to €5.86, up 6% from 2024.
Outlook and Support for the Cypriot Economy
CEO Panicos Nicolaou emphasized that the results confirm the bank’s strategic resilience and ability to perform strongly in a changing environment. According to him, growth in lending and deposits, along with high capital and minimal risk, makes the bank “a reliable partner for customers and for Cyprus’s economy.”
He highlighted the bank’s continued commitment to supporting businesses and households, contributing to sustainable economic growth. According to Cyprus’s Ministry of Finance, the national economy is expected to grow by 3.2% in real terms in 2025, outperforming the Eurozone average.
2026 Outlook and Strategic Priorities
The bank plans to raise its target ROTE from mid-teens to high-teens and will update its strategic priorities in Q1 2026. Management has stated its intention to maintain its focus on sustainable growth, digital innovation, and strong customer support—remaining Cyprus’s largest financial institution and one of the most stable banks in the region.