Bank of Cyprus Receives Notable Ratings Upgrade By Fitch

by News Editor

March 18, 2025

In a remarkable financial development, Fitch Ratings has elevated the ratings of the Bank of Cyprus Public Company Limited (BoC) from ‘BB+’ to ‘BBB-‘, indicating a strong positive outlook. This upgrade underscores the bank’s enhanced asset quality and robust capitalization.

The rating improvement is largely attributed to the bank’s strategic reduction in problematic legacy assets, such as non-performing exposures (NPEs) and net foreclosed properties. This has enabled a healthier capital structure with reduced encumbrance by unresolved problem assets.

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Fitch notes that despite lowering interest rates, BoC’s profitability remains solid thanks to its competence as the largest domestic bank in Cyprus. With consistent deleveraging, it is poised for ongoing financial stability.

Prospective Economic Growth For Cypriot Banks

The favorable outlook anticipates better business and financial prospects amidst Cyprus’s economic growth, with decreasing unemployment and lower private sector debt. BoC’s plans to expand into wealth management and insurance activities stand to gain from these economic trends.

Expectations are that the ratio of BoC’s problem assets will drop below 5% within two years, thanks to diminishing NPE portfolios and active disposals of foreclosed assets. Last year, the bank’s operating profit/risk-weighted assets (RWA) ratio was a robust 5.4%, indicating a sustainable path forward.

Financial Strength And Stability

By the end of 2024, BoC boasted a common equity Tier 1 (CET1) ratio of 19.2%, with a notable buffer over regulatory demands. The bank’s CET1 encumbrance by problem assets fell significantly owing to further disposals.

Supported by a strong Cypriot deposit base, BoC maintains excellent liquidity. Looking ahead, while a downgrade is improbable, Fitch warns that any economic downturn in Cyprus could impact ratings. However, further elevation of the operating environment for Cypriot banks could enhance BoC’s business profile.

If you’re curious about technological advancements in Cyprus, read AI At Work: Cyprus Among Europe’s Most AI-Skeptical Nations.

The Future Forbes Realty Global Properties

Logicom Reports 55% Drop In Q1 Profit

by THEFUTURE.TEAM

June 22, 2026

Earnings And Profitability In Q1 2026

Logicom Public Ltd reported a 55.2% decline in shareholder profit for the first quarter of 2026, with earnings falling to €10.7 million from €23.9 million in the same period last year.

According to the company, the decrease mainly reflected a smaller write-off of negative goodwill related to investment acquisitions, as well as lower turnover, gross profit, and other income. Lower administrative expenses, reduced expected credit losses, and lower taxation partly offset the impact.

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Regional Sales And Division Performance

Gross sales declined by 2% to €286.6 million, compared with €292.4 million a year earlier. Sales in the distribution segment fell by 0.9%, with weaker performance recorded in Saudi Arabia, the United Arab Emirates, Kuwait, and Romania. A steeper decline was reported in the software solutions and integrated IT division, where gross sales dropped by 18.4%, mainly due to lower activity in Cyprus and Greece.

Operational Adjustments And Financial Management

Despite lower revenue, gross profit margins on gross sales improved slightly to 7.9% from 7.8%, while reported sales margins increased to 11.3% from 9.7%. Excluding controlled entity Demetra Holdings Plc, operating profit from ordinary activities rose by 4%, supported by lower administrative expenses and reduced expected credit losses. Financing costs also declined. Expenses related to banking facilities fell by 27.7% to €1.6 million, reflecting lower net borrowings and more favourable lending rates.

Strategic Acquisitions And Future Outlook

Logicom acquired a 31.8% stake in AGI-Cypre Property 45 Limited through Najada Holdings Limited, while Demetra Holdings Plc acquired an additional 26.3% stake. According to the company, the transaction resulted in a write-off of negative goodwill, reflecting the difference between the acquisition cost and the net asset valuation at the time of purchase. Operations through Verendrya Ventures Limited also continued, with the group maintaining its participation in the desalination plants in Episkopi and Larnaca.

Outlook

In line with board estimates, first-quarter results did not include non-recurring gains or extraordinary items. Management said it remains focused on financial discipline and operational efficiency as the group responds to current economic conditions.

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