Bank of Cyprus has announced its financial results for the first half of 2026, demonstrating solid growth across key indicators. Net profit after tax reached €252 million, up 7% compared with the same period last year.
Profit attributable to shareholders increased from €234.6 million to €251.8 million, while basic earnings per share rose from €0.54 to €0.58. Return on tangible equity (ROTE) stood at 18.8%, significantly exceeding the bank’s target for 2026. Management also confirmed its intention to maintain one of the most attractive dividend policies in the Cypriot banking sector.
Dividends Rise by 20% as Loans and Deposits Continue to Grow
The Board of Directors approved an interim dividend of €0.24 per ordinary share. The dividend will be paid in cash in October 2026. Compared with last year, the dividend has increased by 20% and represents 44% of the profit generated in the first half of the year. The bank also confirmed plans to distribute 70% of its full-year 2026 profit to shareholders. In addition, subject to favourable market conditions and sufficient capital levels, an additional distribution of up to 20% of profit may be made.
At the same time, the bank’s loan and deposit portfolios continued to grow:
- performing loans reached €11.4 billion, up 5% since the beginning of the year and 8% year-on-year;
- the deposit base increased to €22.8 billion, 3% above the level recorded at the end of 2025 and 9% higher than a year earlier;
- net loans to customers increased from €10.80 billion to €11.33 billion;
- customer deposits rose from €22.19 billion to €22.80 billion;
- the loan-to-deposit ratio increased from 49% to 50%, while maintaining a comfortable level of liquidity.
The growth in lending reflects continued strong demand for financing from households and businesses, supported by the steady development of the Cypriot economy.
Loan Portfolio Quality Continues to Improve
The bank maintained one of the strongest capital positions among European financial institutions. The Common Equity Tier 1 (CET1) ratio stood at 20.9%, even after taking into account provisions for future dividend distributions. The total capital ratio reached 25.8%, while organic capital generation in the first half of the year amounted to 225 basis points. The quality of the loan portfolio also continued to improve:
- the non-performing exposure ratio declined from 1.2% to 1.0%;
- the coverage ratio for non-performing exposures increased from 139% to 149%.
Credit losses were also minimal. Thanks to the reversal of some previously established provisions, the bank even recorded a net positive effect of 12 basis points. According to analysts, such a low level of problem debt is one of the best results not only in Cyprus but also among major eurozone banks.
Cyprus Economy Supports Further Growth
Operating performance also remained strong. Total income increased by 1% to €515 million. Net interest income remained virtually unchanged at €369 million despite the gradual decline in eurozone interest rates. Fee and commission income rose by 3% to €90 million, while profit from the insurance business increased by 35% to €33 million.
Operating profit reached €306 million, while profit before tax increased by 8% to €300 million. The adjusted cost-to-income ratio remained at 36%, while the overall ratio stood at 41%, indicating a high level of cost management efficiency. Group CEO Panicos Nicolaou said the first-half results reflected the effectiveness of the bank’s diversified business model, growth in lending and deposits, disciplined cost control and steady capital generation.
He also noted that the Cypriot economy remains resilient despite geopolitical uncertainty. The tourism sector gradually returned to the record levels of 2025 during the summer, while the official forecast for the country’s economic growth in 2026 stands at around 2.5%, significantly above the eurozone average. According to the bank’s management, resilient economic growth, an active real estate market, investment and business development will continue to support the banking sector in the second half of 2026.