Bank Of Cyprus Delivers Robust Profitability And Strong Shareholder Returns Amid Resilient Economic Conditions

by THEFUTURE.TEAM

November 11, 2025

The Bank of Cyprus has reported an impressive profit after tax of €353 million for the nine months ended September 30, 2025. This result, which underscores the bank’s resilience in the current interest rate environment, is supported by a robust net interest income, strong liquidity, and improved cost efficiency.

Steady Growth And Lending Performance

In the third quarter alone, the bank recorded a profit after tax of €118 million, while maintaining a cost-to-income ratio of 35 per cent and a return on tangible equity (ROTE) of 18.4 per cent. New lending surged to €2.2 billion, reflecting a 31 per cent year-on-year increase driven largely by international and corporate demand. Gross performing loans increased by 6 per cent to reach €10.71 billion, supported by steady growth in both the domestic and international markets.

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Enhanced Capital Strength And Risk Management

The bank has demonstrated strong capital generation, with organic gains of 326 basis points over the period. A robust capital position is evident with a Common Equity Tier 1 (CET1) ratio of 20.5 per cent and a total capital ratio of 25.4 per cent. Furthermore, the non-performing exposure (NPE) ratio improved to 1.2 per cent, while the cost of risk remained contained at 35 basis points. The successful refinancing of €300 million in Tier 2 notes at a favorable coupon rate of 4.25 per cent further enhanced the bank’s funding profile.

Commitment To Shareholders And Strategic Outlook

In line with its commitment to generating shareholder value, the Bank of Cyprus declared an interim dividend of €0.20 per ordinary share in October 2025 and reaffirmed its target of a 70 per cent payout ratio for the year. CEO Panicos Nicolaou emphasized the bank’s strong performance, noting the 6 per cent year-on-year growth in tangible book value per share to €5.86, complemented by total cash dividends of €0.68 per share in 2025.

Economic Resilience And Future Targets

Nicolaou highlighted that domestic economic growth in Cyprus is outpacing the Euro area average, with projections from the Finance Ministry indicating a 3.2 per cent real GDP growth for 2025. This dynamic environment has motivated the bank to raise its ROTE target for 2025 to the high-teens, with expectations to surpass 20 per cent ROTE at a 15 per cent CET1 ratio. The Bank of Cyprus remains committed to executing its strategic plan, ensuring robust support for its customers and the broader Cypriot economy while continuing to deliver attractive returns to its shareholders.

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Cyprus Income Distribution 2024: An In-Depth Breakdown of Economic Classes

by THEFUTURE.TEAM

December 24, 2025

New findings from the Cyprus Statistical Service offer a comprehensive analysis of the nation’s income stratification in 2024. The report, titled Population By Income Class, provides critical insights into the proportions of the population that fall within the middle, upper, and lower income brackets, as well as those at risk of poverty.

Income Distribution Overview

The data for 2024 show that 64.6% of the population falls within the middle income class – a modest increase from 63% in 2011. However, it is noteworthy that the range for this class begins at a comparatively low threshold of €15,501. Meanwhile, 27.8% of the population continues to reside in the lower income bracket (a figure largely unchanged from 27.7% in 2011), with nearly 14.6% of these individuals identified as at risk of poverty. The upper income class accounted for 7.6% of the population, a slight decline from 9.1% in 2011.

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Income Brackets And Their Thresholds

According to the report, the median equivalent disposable national income reached €20,666 in 2024. The upper limit of the lower income class was established at €15,500, and the threshold for poverty risk was set at €12,400. The middle income category spans from €15,501 to €41,332, while any household earning over €41,333 is classified in the upper income class. The median equivalents for each group were reported at €12,271 for the lower, €23,517 for the middle, and €51,316 for the upper income classes.

Methodological Insights And Comparative Findings

Employing the methodology recommended by the Organisation for Economic Co-operation and Development (OECD), the report defines the middle income class as households earning between 75% and 200% of the national median income. In contrast, incomes exceeding 200% of the median classify households as upper income, while those earning below 75% fall into the lower income category.

Detailed Findings Across Income Segments

Upper Income Class: Comprising 73,055 individuals (7.6% of the population), this group had a median equivalent disposable income of €51,136. Notably, the share of individuals in this category has contracted since 2011.
Upper Middle Income Segment: This subgroup includes 112,694 people (11.7% of the population) with a median income of €34,961. Combined with the upper income class, they represent 185,749 individuals.
Middle Income Group: Encompassing 30.3% of the population (approximately 294,624 individuals), this segment reports a median disposable income of €24,975.
Lower Middle And Lower Income Classes: The lower middle income category includes 22.2% of the population (211,768 individuals) with a median income of €17,800, while the lower income class accounts for 27.8% (267,557 individuals) with a median income of €12,271.

Payment Behaviors And Economic Implications

The report also examines how income levels influence repayment behavior for primary residence loans or rental payments. Historically, households in the lower income class have experienced the greatest delays. In 2024, 27.0% of those in the lower income bracket were late on payments—a significant improvement from 34.6% in 2011. For the middle income class, late payments were observed in 9.9% of cases, down from 21.4% in 2011. Among the upper income class, only 3% experienced delays, compared to 9.9% previously.

This detailed analysis underscores shifts in income distribution and repayment behavior across Cyprus, reflecting broader economic trends that are critical for policymakers and investors to consider as they navigate the evolving financial landscape.

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