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Bank Of Cyprus Posts Record Lending Growth And Declares €305M Dividend Payout

Strong Financial Results And Surging Lending Activity

Bank of Cyprus announced its 2025 financial results on Wednesday, reporting a robust profit after tax of €481 million. This strong performance was buoyed by record new lending activity that reached €3 billion, reflecting an impressive 23% increase year-on-year.

Robust Operational Performance And Shareholder Returns

CEO Panicos Nicolaou highlighted that “2025 was another strong year for Bank of Cyprus, demonstrated by our financial and operational performance.” Emphasizing the firm’s cost efficiency, robust liquidity, and sound asset quality, he noted significant growth in gross performing loans, which climbed 8% year-on-year to €10.9 billion, while the retail deposit base also rose 8% to €22.2 billion.

Enhanced Lending And International Expansion

Nicolaou underlined that the bank exceeded its target of circa 4% loan growth, driven primarily by healthy domestic credit activity combined with accelerating growth in its international loan portfolio. With strong corporate and international demand underpinning this growth, the operational metrics reaffirm BoC’s resilience and focus on sustainable expansion.

Efficiency And Capital Strength

The financial year was marked by a low cost to income ratio of 37%, reflecting strict cost discipline. Key performance indicators also included a return on tangible equity of 18.6% and basic earnings per share of €1.10. Additional highlights were a CET1 ratio of 21.0%, a total capital ratio of 25.9%, and surplus liquidity of €9.2 billion, further solidifying the bank’s resilient balance sheet.

Investor Confidence And Future Outlook

The bank’s commitment to maximizing shareholder value was evident in its total dividend distribution of €305 million, corresponding to a 70% payout ratio. Nicolaou reiterated, “We are delivering sustainable shareholder returns, as evidenced by almost €550 million of cumulative distributions over the last two financial years.”

Looking Ahead

With Cyprus’ economy projected to grow by 3.1% in real terms in 2026, well above the Eurozone average, Bank of Cyprus is well-positioned to continue supporting its customers and fueling national economic growth. The bank will provide further strategic insights and financial targets during an investor update scheduled for March 3, 2026.

Bank of Cyprus demonstrated strong financial performance in 2025 and reaffirmed its focus on sustainable growth and shareholder value, reinforcing its position as Cyprus’ leading financial services group.

EU Services Production Grows As Information And Communication Lead

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.

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