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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Cypriots Report Growing Economic Concerns In New Eurobarometer Survey

by THEFUTURE.TEAM

May 11, 2026

Eurobarometer Survey Reveals Stark Economic Outlook

A comprehensive Eurobarometer survey conducted between March 12 and April 1, 2026, has revealed significant economic and institutional challenges in Cyprus ahead of Europe Day. The study, which included 506 interviews in Cyprus as part of a pan-European sample of 26,415 citizens, underscores a pronounced economic pessimism and declining trust in national and European institutions.

Economic Sentiment And Future Projections

More than half of Cypriots, or 53%, described the country’s economic situation negatively, while 46% expressed a positive assessment. Across the European Union, by comparison, 60% of respondents viewed their national economies positively and 38% negatively.

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Economic pessimism also increased sharply compared with autumn 2025. Around 51% of Cypriots said they expect the economy to deteriorate further over the next year, marking a 23 percentage point increase from the previous survey period. Only 11% anticipated economic improvement.

Despite broader concerns about the economy, perceptions of personal financial conditions remained relatively stable. Around 75% of respondents described their household financial situation positively, while 60% said they expect employment conditions to remain stable over the coming year.

Main Challenges And Priorities For Action

The cost of living remained the leading concern among Cypriot respondents at 36%, followed by developments in the Middle East at 30%, the national economy at 24%, migration at 23% and housing at 21%. Across the EU more broadly, respondents prioritised instability in the Middle East, Russia’s invasion of Ukraine and migration.

Regarding policy priorities, Cypriots said EU spending should focus primarily on employment, social policy and healthcare, alongside education, youth initiatives, housing and security.

Institutional Distrust And European Identity

Trust in national institutions remained low throughout the survey. Only 31% of respondents said they trust the government, while confidence in parliament stood at 22%. At the same time, 74% expressed distrust toward parliament.

Views toward the European Union also remained divided. Around 39% of Cypriots said they trust the EU, compared with 54% who said they do not, although this represented a slight improvement from autumn 2025.

The survey additionally pointed to a stronger sense of local and national identity than European identity. While 92% said they feel connected to their local communities and 95% to Cyprus itself, only 52% reported feeling attached to the EU and 45% identified with Europe more broadly.

Digital Security And Divergent Foreign Policy Views

Concerns about digital safety also remained elevated, with 53% of respondents saying major online platforms are not doing enough to remove illegal or harmful content. Another 45% said existing user protection measures remain insufficient.

The survey also revealed notable differences between Cypriot and wider EU attitudes toward the war in Ukraine. Although 77% supported accepting refugees and 70% backed humanitarian and economic assistance, support for sanctions against Russia stood at only 30%, significantly below the EU average.

Support for military assistance to Kyiv remained particularly low at 18%, while only 41% of respondents supported Ukraine’s future EU membership compared with 56% across the bloc.

Conclusion

The findings reflect growing economic anxiety and continued institutional scepticism in Cyprus amid broader geopolitical uncertainty across Europe and the Middle East. At the same time, the survey showed that Cypriots remain highly focused on domestic economic stability, social policy and cost-of-living pressures as key priorities for the years ahead.

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