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Bank of Cyprus Receives Notable Ratings Upgrade By Fitch

by News Editor

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.

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.

Cyprus Builds A €3.2 Billion Gaming Industry Beyond Steam

by News Editor

Cyprus’ gaming industry generated an estimated €3.2 billion in revenue in 2025, but most PC and console sales took place outside Steam.

Around €1.8 billion came from mobile games and €1.4 billion from PC and console titles. Only about €200 million of the latter was generated through Steam, meaning roughly 86% came from other channels.

A Direct-To-Consumer Model

Steam gives developers access to a global audience but takes a standard 30% commission. Some Cyprus-based companies instead sell games and digital content through their own websites, payment systems and platforms.

This approach can reduce marketplace fees while giving companies more control over marketing and their relationship with customers.

A Growing International Hub

The Cyprus Video Game Industry Report 2025 identified 415 gaming companies operating on the island, employing more than 4,300 people. The number of companies grew from 169 in 2019 to 393 in 2024, while employment nearly tripled.

Much of the sector targets international players rather than Cyprus’ relatively small domestic market. The industry includes both local businesses and international gaming companies using Cyprus as a base.

The report says the 86% figure should be treated as an estimate, since direct sales are harder to measure than transactions through platforms such as Steam.

Still, the data shows that Cyprus has developed a sizeable international gaming sector with a business model that relies far less on traditional digital marketplaces.

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