Bank of Cyprus has published its financial results for 2025, showing significant growth across key indicators. Net profit after tax reached €481 million, of which €128 million was generated in the fourth quarter. These figures confirm the steady development of the country’s largest banking institution amid ongoing economic activity on the island.
Growth in lending and client activity
One of the main achievements was a record volume of new lending, which reached €3 billion. This is 23% higher compared to the previous year and reflects strong demand for financing from both businesses and private clients.
The total performing loan portfolio increased to €10.9 billion, growing by 8% year-on-year. At the same time, the bank’s deposit base strengthened, reaching €22.2 billion. The majority consists of retail deposits, and the overall growth also stood at 8% annually, indicating customer confidence and financial system stability.
Profitability and efficiency
Basic earnings per share amounted to €1.1, an important indicator for investors. At the same time, the bank continues to manage costs efficiently: the cost-to-income ratio remains low at 37%. This reflects strong operational efficiency and a well-executed management strategy.
Reduced risks and strong liquidity
The financial results also show an improvement in asset quality. The share of non-performing loans has been reduced to 1.2%, while the cost of credit risk remains low at 33 basis points.
The bank maintains a high level of liquidity. The liquidity coverage ratio reached 321%, and total liquidity reserves stood at €9.2 billion. These figures indicate the institution’s ability to confidently withstand potential economic fluctuations.
Strong capitalization and shareholder payouts
The bank’s capital base remains one of the strongest in the region. The common equity tier 1 ratio reached 21%, while the total capital adequacy ratio stood at 25.9%.
An important signal for investors was the generous profit distribution policy. For 2025, the payout ratio reached 70%, with total dividends amounting to €305 million, which will be paid to shareholders in cash.
Overall picture and economic significance
The financial results show that Cyprus’s banking sector continues to strengthen after past crises and is adapting to modern conditions. Growth in lending, increased deposits, and a high profit of €481 million indicate restored confidence and expanding economic activity.
Experts note that such performance may support further business development and household financing. However, amid high interest rates in the eurozone, banks continue to play a key role in balancing the country’s economy.