In a display of resilient financial performance, Bank of Cyprus reported profit after tax of €121 million for the quarter ended March 31, 2026. The results were supported by accelerating lending growth, stable asset quality and continued capital generation, reinforcing the bank’s broader growth strategy amid ongoing geopolitical and economic uncertainty.
Financial Performance And Growth Metrics
Return on tangible equity reached 18%, while basic earnings per share stood at €0.28. New lending increased to €829 million during the quarter, representing a 9% rise compared with the previous period. Growth in lending activity contributed to an expansion of the bank’s gross performing loan portfolio, which reached €11.1 billion. Customer deposits remained stable at €22.3 billion, reflecting continued liquidity strength and deposit stability.
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Operational Efficiency And Asset Quality
Operational efficiency remained a central focus during the quarter, with the cost-to-income ratio standing at 37%. Asset quality indicators also continued improving, as the non-performing exposure ratio declined to 1.1%, while the cost of risk benefited from a net release of 17 basis points. Panicos Nicolaou said the results were supported by stabilising net interest income alongside disciplined cost management across the group.
Strategic Acquisitions And Expanding Digital Horizons
Bank of Cyprus also continued pursuing expansion through targeted acquisitions and digital investment initiatives. The bank reached an agreement to acquire the performing loan and deposit portfolio of Cyprus Development Bank Public Company Limited in a transaction involving approximately €150 million in loans and €500 million in deposits. In parallel, Bank of Cyprus acquired a 26% stake in Wealthyhood as part of efforts to strengthen its digital investment and wealth management services focused on stocks and exchange-traded funds.
Market Outlook And Future Targets
Despite continued geopolitical uncertainty, the bank said the Cypriot economy remains resilient, with GDP growth forecasts for 2026 ranging between 2.7% and 2.9%, above the broader eurozone average. Bank of Cyprus maintained its medium-term targets for 2026–2028, including a mid-teens annual return on tangible equity. Management also reiterated plans to maintain a significant shareholder distribution policy, targeting payouts of up to 90% of 2026 earnings and potentially 100% for 2027 and 2028.
Conclusion
Bank of Cyprus said its strong capital position, stable balance sheet and continued lending growth support its ability to navigate ongoing economic and geopolitical uncertainty. According to Nicolaou, the bank remains focused on supporting customers and the broader Cyprus economy while continuing to deliver sustainable returns for shareholders.
