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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Mercedes-Benz Posts Higher Profit Despite China Slowdown

by THEFUTURE.TEAM

July 29, 2026

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

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Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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