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Bank Of Cyprus Approves 2025 Results With €3 Billion Lending And €481 Million Profit

Robust Growth And Strategic Initiatives

Bank of Cyprus said its board approved the annual financial report for the year ended December 31, 2025, including audited consolidated results for the group. The report covers Bank of Cyprus Holdings Public Limited Company, Bank of Cyprus Public Company Limited, and subsidiaries. The document is available through the bank’s investor relations platform.

Impressive Lending Volume And Financial Performance

New lending reached €3 billion, up 23% year on year. Gross performing loans increased to €10.9 billion, rising 8%. Retail deposits grew to €22.2 billion, also up 8%. Profit after tax totaled €481 million, including €128 million in the fourth quarter. Return on tangible equity stood at 18.6%, while basic earnings per share reached €1.10.

Operational Efficiency And Resilience

Cost to income ratio was 37%, reflecting operating efficiency. Non-performing exposure ratio stood at 1.2%, while cost of risk was 33 basis points. Liquidity coverage ratio reached 321%, supported by surplus liquidity of €9.2 billion.

Enhanced Capital And Stress Test Performance

Common equity tier 1 ratio stood at 21.0%, while total capital ratio reached 25.9% as of December 31, 2025. Capital levels were supported by profitability despite distributions and business growth. The bank participated in the 2025 European Central Bank supervisory stress test and reported results above the average of participating institutions. Regulatory buffers are set to increase, with the countercyclical buffer rising from about 0.90% to 1.50% and the systemically important institution buffer from 1.9375% to 2.25% starting January 2026.

Shareholder Value And Dividend Policy

The bank targets a payout ratio between 50% and 70%. Total distribution for 2025 reached €305 million, equal to 70% of adjusted recurring profitability. This includes a cash dividend of €0.70 per share. An interim dividend of €0.20 per share was paid in October 2025. A final dividend of €0.50 per share is proposed for approval at the annual general meeting on May 15, 2026, compared with €0.48 per share in 2024. A share buyback programme resulted in the cancellation of more than 5.1 million shares at an average price of €5.83.

Strategic Acquisitions And Future Outlook

Recent developments include a minority investment in Wealthyhood and the acquisition of a performing loan portfolio and deposits from Cyprus Development Bank Public Company Limited. These transactions expand the bank’s portfolio alongside existing liquidity and capital levels.

Minds In Cyprus Draws Strong Interest In London And Birmingham As Cyprus Expands Talent-Repatriation Push

Strong interest in career opportunities in Cyprus and the incentives available to professionals considering a return was evident at two Minds in Cyprus events held in Birmingham and London, bringing together more than 350 Cypriot professionals working in the United Kingdom.

Held on June 22 in Birmingham and June 23 in London, the events featured 24 companies and organisations from Cyprus, showcasing more than 110 highly skilled job opportunities across key sectors of the economy.

A Direct Link Between Cyprus And Its Global Talent Base

The initiative returned to the United Kingdom one year after its launch in London by President Nikos Christodoulides. Representing the government, Deputy Minister to the President Irene Piki outlined the programme’s progress over the past year, the incentives now available and the career opportunities emerging in Cyprus.

Designed to connect Cypriots living abroad with businesses and organisations operating on the island, the initiative attracted participants from fast-growing sectors including technology, fintech, financial and professional services, research, innovation and energy.

Showcase In London, Roundtable In Birmingham

The London event took the form of a career opportunities exhibition, while Birmingham hosted an open roundtable discussion on Cyprus’ economic prospects, labour market needs and efforts to strengthen ties with the Cypriot diaspora.

Piki said Minds in Cyprus is a coordinated initiative designed to position Cyprus as a credible option for professionals planning their next career move. The objective, she added, is not only to encourage Cypriots to return, but also to create the conditions that make returning to, or working with, Cyprus a realistic professional choice.

Economic Momentum Is Reframing The Case For Return

Referring to Cyprus’ economic performance, Piki pointed to strong growth, historically low unemployment, declining public debt and successive upgrades by international credit rating agencies. She said these developments are increasing demand for specialised talent, particularly in high value-added sectors.

Particular emphasis was also placed on the Opportunities for Talent platform, which already has more than 700 registered professionals and features over 330 specialised vacancies from companies and organisations in Cyprus.

Tax Relief And Practical Support Are Central To The Offer

Targeted tax incentives for professionals considering a return were also presented. These include a new 25% tax exemption on employment income for Cypriots who have lived abroad for seven years, alongside the existing 50% tax exemption available in specific cases. Officials said the measures are intended to reduce costs and uncertainty during the first years after relocation.

Alongside the tax incentives, the government presented practical support measures under the Minds in Cyprus action plan, including faster recognition of professional qualifications and licences, assistance with residence and work permits for spouses or partners, support for families relocating to Cyprus, and access to centralised information through the Information Hub.

Representatives from the Tax Department and the Research and Innovation Foundation also briefed participants on tax matters, funding programmes, research opportunities and innovation support tools.

Beyond Return: Keeping Cyprus Connected To Its Diaspora

Piki said the initiative is intended not only for those considering a return to Cyprus, but also for professionals who wish to remain connected to the country by collaborating with Cypriot businesses, sharing expertise or contributing to projects being developed on the island.

“Minds in Cyprus does not simply ask for a return,” she said. “It creates the conditions for the idea of returning or collaborating to become a real option.”

The events were organised by the government and Invest Cyprus, with the support of the Cyprus Chamber of Commerce and Industry, Cypriots in the City, and companies and organisations operating in Cyprus.

More broadly, the initiative forms part of the government’s strategy to attract and deploy talent, strengthen the competitiveness of the Cypriot economy and leverage the international experience of Cypriots living and working abroad.

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