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.

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Cyprus Tops 5.5 Million Overnight Stays As Summer Dominates EU Tourism

by THEFUTURE.TEAM

July 9, 2026

Cyprus recorded more than 5.5 million overnight stays in tourist accommodation during July and August 2025, highlighting the island’s continued reliance on the peak summer season, according to data released by Eurostat.

Peak Season Continues To Dominate

The EU statistical office reported 2,627,725 overnight stays in Cyprus in July and 2,953,148 in August, bringing the combined total for the two busiest months of the year to 5,580,873.

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Visitor numbers remained strong into the shoulder season, with 2,484,732 overnight stays recorded in September and 2,382,970 in October, before dropping to 859,936 in November and 504,843 in December.

Seasonality Remains A Defining Feature Of European Tourism

Across the European Union, 31.1% of all overnight stays in tourist accommodation during 2025 were concentrated in July and August, which were the busiest tourism months in every member state.

According to Eurostat, seasonal travel patterns continue to be shaped by factors such as climate, geography and school holidays. For Mediterranean destinations, those factors concentrate demand into a relatively short period, creating opportunities during the summer while increasing pressure to attract visitors throughout the rest of the year.

Cyprus Among Europe’s More Seasonal Markets

Croatia recorded the strongest seasonal concentration in the EU, with 54.5% of annual overnight stays taking place in July and August. Bulgaria followed with 43.4%, while Greece recorded 41.6%.

At the opposite end of the ranking, Malta had the lowest share of overnight stays during the peak season at 21.9%, followed by Germany at 24.0% and Finland at 24.1%.

August Remained The Busiest Month

Across the EU, August was once again the busiest month for tourism. Eurostat said the number of overnight stays that month was 3.6 times higher than in January, the quietest month of the year.

The contrast was even more pronounced in some destinations. In Croatia, overnight stays in August were 41.1 times higher than in January, while Greece recorded a ratio of 20.5.

For Cyprus, the figures underline the importance of the summer season to the tourism industry while also highlighting the role of the shoulder months in extending visitor activity beyond the traditional peak period.

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