Major banks in Cyprus and Greece remained highly profitable in the first half of 2026, even as interest rates continued to decline. The four major Greek banks generated around €2.5 billion in combined profit, while including Bank of Cyprus brings the total to roughly €2.8 billion.
The results point to a changing environment for the sector. As interest rates become less supportive, stronger lending, fee income, international operations and improved efficiency are playing a bigger role in earnings.
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Strong Results Across The Sector
Eurobank reported €738 million in first-half net profit, rising to €776 million on an adjusted basis, with return on tangible equity at 16.6%. Its Cyprus operations contributed €231 million, although that was 7.7% below the previous year.
Bank of Cyprus posted €252 million in after-tax profit, up 7% year-on-year, while return on tangible equity reached 18.8%. Net interest income remained broadly stable at €369 million despite lower rates, supported by loan and deposit growth, lower funding costs and hedging.
The bank’s performing loan portfolio reached about €11.4 billion. It also announced an interim dividend of €0.24 per share, worth approximately €105 million.
Greek Banks Keep Lending
National Bank of Greece reported €661 million in profit, up 3%, with adjusted return on tangible equity at 15.5%. Strong lending and higher fee income supported upgrades to several 2026 targets.
Piraeus recorded a record €617 million in first-half profit, while its loan portfolio expanded by €1.8 billion.
Alpha Bank reported €497 million in profit, with normalised earnings of around €500 million. Fee income was a particularly strong contributor, while lending growth supported net interest income.
A Shift Beyond Interest Income
With rates moving lower, banks are increasingly relying on credit expansion and fee-generating businesses to maintain profitability. Business lending is becoming a key growth driver, while services such as investment products, cards and insurance are providing additional revenue.
Strong capital positions are also allowing banks to increase shareholder distributions. Bank of Cyprus plans to distribute 70% of its 2026 profit and has indicated there could be room for an additional payout. Its interim dividend is 20% higher than a year earlier.
