Breaking news

Cyprus Banks Report €1.024 Billion Profit In 2025 As Assets And Capital Increase

Latest data released Tuesday by the Central Bank of Cyprus show banking sector net profit declined in 2025, while total assets and capital adequacy increased.

Declining Profitability Driven By Interest Income Contraction

Banking sector net profit declined by €165 million, or 13.9%, to €1,024 million in 2025 from €1,189 million in 2024. Decline reflects lower net interest income (NII), indicating pressure on lending revenues as interest rate conditions evolve. Additional analysis of banking performance has been published by industry analysts.

Asset Expansion Fueled By Increased Lending And Investments

Total assets increased by €4,357 million, or 6.6%, to €69,961 million at the end of 2025, compared with €65,604 million a year earlier. Growth reflects higher volumes of loans, advances, and debt securities, indicating continued balance sheet expansion.

Enhanced Capital Adequacy Strengthens Sector Resilience

Common Equity Tier 1 ratio increased to 25.8% at the end of 2025 from 24.7% in 2024, a rise of 1.1 percentage points. Increase reflects higher CET1 capital and a reduction in risk-weighted assets, strengthening capital buffers. Banks expanded assets and improved capital positions during the period, while profitability declined due to lower interest income.

Cypriot Startup LIVIA Wins Europe’s Top Youth Entrepreneurship Competition

A Cypriot university team has won the European GEN-E 2026 youth entrepreneurship competition with LIVIA, a smart agriculture platform that combines satellite data, autonomous drones and artificial intelligence to help farmers improve irrigation, detect disease earlier and reduce pesticide use.

Alongside first place, the team received the FedEx Access Award, expanding its access to investors, entrepreneurs and industry experts across Europe.

Initially developed for vineyards, LIVIA analyses individual plants and turns complex data into practical recommendations. The team is now preparing its first functional product and pilot projects in Cyprus, with plans to expand into additional crops and international markets.

From An Idea To Smart Agriculture

LIVIA began with a simple question: how could satellite data create practical value in everyday life? After exploring applications ranging from meteorology to marine biology, the team identified agriculture as the sector with the greatest potential.

Recognising the limitations of satellite imagery alone, particularly in resolution and update frequency, the founders integrated autonomous drones into the platform to provide more detailed field data.

Designed as a modular system, LIVIA can continuously incorporate new data sources and capabilities. Its initial focus is irrigation management, early disease detection and plant health monitoring, with vineyards serving as the first use case because of their importance to Cyprus and the team’s own experience.

Turning Data Into Decisions

Satellite imagery provides continuous monitoring of crops, while autonomous drones capture high-resolution images whenever greater precision is needed.

Artificial intelligence then combines those datasets with information collected by growers, including IoT sensors and field observations, to generate tailored recommendations for irrigation, disease prevention and resource management.

By analysing each plant individually, the platform enables precision agriculture rather than field-wide recommendations.

Building A Hardware And Software Startup

Developing LIVIA has required balancing advanced software with specialised hardware, including drones, multispectral cameras and charging stations, all while operating with limited resources.

Although the startup participates in the Bank of Cyprus IDEA programme and has secured non-equity funding, integrating multiple data sources into a reliable AI system remains its biggest technical challenge.

The Role Of Junior Achievement

Participation in the JA StartUp Programme helped transform the original concept into a business proposition through mentoring, coaching and pitch preparation.

Support continued after LIVIA won the national competition, with the Junior Achievement Cyprus team helping the founders prepare for the European final in Latvia.

European Recognition

Winning GEN-E 2026 and the FedEx Access Award marked the team’s biggest milestone to date and created new opportunities to connect with investors, entrepreneurs and industry experts across Europe.

The founders are now focused on completing their minimum viable product, launching pilot projects in Cyprus and expanding the platform to new crops and international markets.

The Future Forbes Realty Global Properties
eCredo
Uol
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter