Robust Dividend Announcement

The National Bank of Greece (NBG) has confirmed the distribution of an interim dividend for the 2025 financial year. Following meetings of its Board of Directors on September 18 and October 22, 2025, the bank will disburse a total gross cash dividend of €200 million, equating to €0.2186 per share. After adjustments for shares held by the bank, the final gross dividend is set at €0.2210 per share.

Tax Implications And Key Dates

A 5% withholding tax will apply, resulting in a net dividend of €0.2100 per share for eligible shareholders, in accordance with Article 64 of Law 4172/2013, except where specific provisions under Articles 46, 48, and 63 alter the outcome. The ex-dividend date is scheduled for Monday, November 10, 2025, with shareholders needing to be registered in the Dematerialised Securities System (DSS) managed by Hellenic Central Securities Depository S.A. (ATHEXCSD) by Tuesday, November 11, 2025. Dividend payments will be processed on Friday, November 14, 2025, through NBG’s designated paying bank via participant banks and brokerage firms, as stipulated by ATHEXCSD regulations.

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Impressive Financial Performance

NBG’s first nine months of 2025 have underscored its robust performance. The bank reported net profits of approximately €1 billion, with earnings per share meeting the annual target at €1.40. Furthermore, the return on tangible equity (RoTE) was recorded at 15.6% on a normalized basis, while the reported figure hit 16.1%, comfortably surpassing the year-end goal of over 15%.

Solid Capital Foundation And Expanding Credit Portfolio

The bank has maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 19.0%—well above its 2025 target of 18%—and a total capital adequacy ratio of 21.8%. This solid base supports its strategic flexibility, including a planned total dividend payout of 60% of 2025 profits alongside the €200 million interim dividend. Additionally, credit growth has been notable with performing loans increasing by 12% year-on-year to €34.7 billion, alongside a non-performing exposure ratio of 2.5% and coverage at 101%.

Strategic Digital And Customer Initiatives

NBG continues its robust digital transformation efforts. Its migration to a new Core Banking System, scheduled for completion in the first quarter of 2026, and the launch of its AI-powered digital assistant, “Sophia,” are expected to further enhance operational efficiency and customer service. Digital engagement remains strong with over 4.4 million subscribers to its online channels, complemented by significant increases in both deposits and funds under management.

Commitment To Sustainability And Social Responsibility

The bank is also dedicated to sustainability and social impact initiatives. It is actively financing projects that aid Greece’s green transition and supports societal causes such as upgrading public school infrastructure through the “Marietta Giannakou” programme, along with providing aid to the National Emergency Aid Centre (EKAB) and communities affected by disasters in Chios.

Future Outlook And Leadership Commentary

Chief Executive Officer Pavlos Mylonas remarked, “The Greek economy has shown remarkable resilience amid global pressures, with robust domestic investment and record tourism projections underscoring our growth potential.” Mylonas highlighted that favourable labour market conditions, coupled with supportive fiscal and monetary policies, fortify Greece’s economic outlook. He also noted that the bank’s strong capital position and steady dividend commitment ensure enhanced shareholder value and support for strategic investments.

Conclusion

NBG’s interim dividend announcement and impressive financial metrics reflect its strategic positioning for continued growth. With a clear focus on digital innovation, sustainable investments, and maintaining a robust capital structure, the bank remains well-equipped to navigate the evolving economic landscape while delivering value to its shareholders and supporting Greece’s broader economic development.

The Cypriot government is making bold strides to modernise its investment environment, with a key focus on the aviation sector. Finance Minister Makis Keravnos recently underscored this commitment during the inauguration of a state-of-the-art hangar at Larnaca’s historic airport.

Strategic Framework for Economic Progress

At the ceremony, Minister Keravnos highlighted the crucial interplay between public policy and private enterprise. The minister stressed that sustainable economic growth is achieved when the state provides a robust framework, enabling market forces, investments, and innovations to flourish. This approach is central to the government’s broader vision of transforming the investment landscape in Cyprus.

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Bird Aviation: A Pillar of Aviation Excellence

Bird Aviation, a leading Cypriot company with over 250 employees, has built a solid reputation over the last decade in aircraft repair and maintenance. The newly inaugurated hangar, which represents an investment of more than €2.5 million, is a testament to the company’s commitment to modernising its operations at the classic Cyprus Airways base. This investment not only ensures high-quality maintenance services but also reinforces the company’s role in servicing some of Europe’s premier airlines. For further details, visit Bird Aviation.

Aviation Hub at a Global Crossroad

Bird Aviation CEO Frederic Pralus articulated a forward-looking vision, noting that Cyprus’s strategic geographical position—bridging Europe, the Middle East, and Africa—places it at the heart of a dynamic aviation hub. Operating more than 7,000 working hours weekly, the company is poised for continued growth and innovation, affirming that “the best is yet to come.”

The Cyprus economy continues to operate under a regime of steady fiscal discipline, according to Michalis Persianis, President of the Fiscal Council of Cyprus. In his 2024 Activity Report, published on the Council’s website, Persianis outlines a robust macroeconomic environment characterized by stable growth and resolute measures to maintain fiscal health.

Strong Macroeconomic Fundamentals and Revenue Expansion

Persianis emphasizes that key macroeconomic and fiscal indicators remain strong, with the economy growing at an approximate rate of 3% supported by a diversified base of activities. Concurrently, the public debt trajectory is on a downward path, with clear policies aimed at reducing it to below 60% of GDP by 2025.

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In addition to these measures, state revenues are rising at a pace that exceeds expectations, outstripping growth and inflation rates. Employment levels remain robust while the unemployment rate has been tightly contained, suggesting that any further decline in unemployment might signal potential imbalances in the labor market.

Resilient Consumption and Zero Inflation

Despite the strong growth phase, the inflation rate remains at a stable zero, even as consumption—albeit experiencing mild deceleration—continues to serve as a cornerstone for sustained economic progress. This balance underscores Cyprus’s ability to drive growth while managing inflationary pressures.

Risks of Complacency in Favorable Times

While the current economic outlook appears positive, Persianis warns that such prosperity could foster a false sense of security. He cautions, “These are the easy times, which also make them the most dangerous,” highlighting the essential role of the Fiscal Council in safeguarding the long-term fiscal stability of the nation.

Looking ahead, he anticipates that external geopolitical developments, an increase in global debt, and rapid technological changes will impose additional challenges during the 2027–2028 period.

Preparing for Future Challenges With Structural Reforms

Persianis identifies two primary priorities for Cyprus. First, preserving fiscal leeway is essential to allow for decisive action when circumstances demand it. Second, the country must prepare for emerging risks such as climate change, natural disasters, rising electricity demand, and significant infrastructure challenges.

In particular, he notes an urgent need to upgrade infrastructure in the water, energy, and public transportation sectors—areas that are approaching critical levels of strain and necessitate substantial investment.

International Recognition And The Role Of The Fiscal Council

The Activity Report also highlights ongoing enhancements in the Council’s analytical capabilities, including investments in quantitative models and external evaluations. Notably, the Council is set to host the 2026 Thematic Conference of the European Network of Independent Fiscal Institutes (EUNIFI) at a time when Cyprus will preside over the European Commission.

In conclusion, Persianis views the current favorable economic conditions as a unique opportunity to implement reforms that will fortify public finances and shield the nation from future risks. His analysis serves as both a celebration of current achievements and a cautionary call for sustained vigilance and structural advancement in fiscal policymaking.

Recent Eurostat data reveals that the European Union experienced a 5.2 percent surge in the average annual full-time adjusted salary in 2024, underscoring a robust upward trend across the bloc. However, Cyprus continues to trail its counterparts, with wage growth that, although steady, remains significantly below the EU benchmark.

EU Wage Growth Momentum

The comprehensive survey, which standardizes part-time salaries to full-time equivalents, confirms that EU nations collectively have enjoyed rising incomes. The overall average wage reached €39,808 in 2024, reflecting a commendable increase from €37,840 in 2023. Such figures highlight not only the recovery in many mature economies but also the varying economic conditions across the region.

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Cyprus’ Wage Trajectory

Despite registering an upward trend, Cyprus’ average annual full-time adjusted salary stood at €27,611 in 2024, only marginally higher than €26,668 in 2023 and €24,203 in 2022. This persistent gap relative to the bloc’s average indicates that while reforms may be underway, significant structural differences remain when compared to leading EU economies.

Regional Wage Disparities

Among EU members, Luxembourg leads with an impressive average of €82,969, trailed by Denmark at €71,565 and Ireland at €61,051. In stark contrast, Bulgaria, Greece, and Hungary report considerably lower wages, with Bulgaria at €15,387, Greece at €17,954, and Hungary at €18,461. These disparities reflect variations in economic development, market maturity, and policy frameworks across Europe.

Implications For Policy And Investment

For investors and policymakers, these figures serve as a barometer of economic health and competitive positioning within the EU. While robust wage growth in countries such as Luxembourg and Denmark suggests strong economic fundamentals, Cyprus’ lagging performance raises critical questions about future competitiveness and the need for strategic reforms. Stakeholders may need to explore targeted policies or investment frameworks to bridge this gap and stimulate higher wage growth.

KEO, the distinguished Cypriot beverage-maker, has executed a transformative upgrade at its Limassol brewery, deploying six high-spec fermentation and maturation tanks to elevate product quality and enhance customer satisfaction.

Strategic Infrastructure Investment

The impressive new structures, dominating the brewery’s entrance, represent one of KEO’s most significant capital investments in recent years. Four of the tanks soar to 17 metres with a diameter of 4.5 metres and a capacity of 1,600 hectolitres each, while two smaller tanks—each 8 metres high with a diameter of 2.3 metres—are crafted for the precision production of speciality beers.

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Advanced Automation and Real-Time Monitoring

Built to exacting German standards, the upgraded tanks are equipped with an advanced automation and monitoring system that digitally supervises fermentation and maturation in real time. Key brewing parameters such as temperature, pressure, and carbon dioxide levels are continuously tracked, ensuring optimal conditions throughout the production process. This technological sophistication guarantees the consistency and superior quality that have become synonymous with KEO.

Sustainable and Eco-Friendly Processes

The installation also features an automatic cleaning and sterilisation system that operates without human intervention. This eco-friendly approach not only ensures impeccable hygiene but also significantly reduces water and energy consumption, aligning with KEO’s broader sustainability commitments.

Raising the Bar in European Brewing

This pivotal upgrade places KEO’s production facilities on par with some of Europe’s most technologically advanced breweries. More than just a refinement of equipment, this investment reinforces KEO’s dedication to delivering consistency, sustainability, and an unparalleled taste experience, thereby setting new standards in Cypriot beer production.

Strong Financial Performance Drives Growth

Alpha Bank reported impressive financial performance for the first nine months of 2025, with post-tax profits reaching €703.7 million. The bank also recorded significant gains during the third quarter with profits of €186.7 million. Adjusted post-tax profits stood at €677.1 million for the nine-month period and €217.2 million for the third quarter, translating into a return on tangible equity (RoTBV) of 13.9% and 12.9% respectively.

Capital Adequacy And Operational Excellence

The bank maintained a robust fully-loaded Common Equity Tier 1 (FL CET1) ratio of 15.7% with a tangible book value per share of €3.28. Operating performance was strengthened by stable organic profitability and consistent balance sheet improvement. In Greece, net credit expansion reached €0.7 billion during the quarter, contributing to a performing loans portfolio totaling €35.7 billion, which saw impressive quarterly and annual growth of 2.2% and 13% respectively.

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Deposit Growth And Risk Management

Alpha Bank’s deposit base expanded by €1.6 billion (a 3.1% quarterly increase) with term deposits now accounting for 27% of the total. Total customer funds grew by 9.2% year-on-year, driven by an increase in the strong deposit base and a 17.2% boost in assets under management. The non-performing exposures (NPE) ratio remained contained at 3.6%, while risk management continued to align with targets, maintaining the cost of risk at 44-45 basis points for the reporting periods.

Strategic Acquisitions And Funding Milestones

In a strategic move to enhance its market footprint, Alpha Bank successfully completed the acquisition of AstroBank in Cyprus. This deal is projected to boost earnings per share by approximately 5%, further solidifying the bank’s position as the third-largest lender in Cyprus. Additionally, in October 2025, Alpha Bank issued a six-year senior preferred green bond of €500 million at a historically low margin, reinforcing its strong funding profile.

Management Commentary And Strategic Outlook

Alpha Bank’s CEO, Vasilis Psaltis, emphasized the bank’s commitment to value creation and sustainable growth. He highlighted that the diversified revenue streams and strong capital position—with a CET1 ratio of 15.7% that improves to 15.8% when accounting for planned M&A activities—ensure that the bank is well positioned to pursue selective acquisitions and improve shareholder returns. Notably, provisions for dividends have already reached €352 million with an interim dividend of €111 million scheduled for December.

Psaltis credited the bank’s robust performance to dynamic business lending, steady deposit inflows, and strategic partnerships, including enhanced cooperation with UniCredit. The collaboration, which reinforces UniCredit’s participation to approximately 29.5%, is already delivering benefits in the realms of Wholesale, Transaction Banking, and Wealth Management.

Conclusion

As Alpha Bank enters the final phase of its three-year strategic plan, the focus remains on delivering organic growth, targeted credit expansion, and sustained revenue diversification. With an upcoming Investor Day set for the second quarter of 2026, the bank is poised to outline its strategic priorities and showcase its continued momentum in a complex and evolving market environment.

The Ministry of Interiors and Civil Protection has outlined an ambitious strategy for the upcoming 2026 fiscal year. The newly unveiled budget underscores a comprehensive reform agenda, featuring accelerated real estate auction processes, robust housing policies, and enhanced measures to streamline bureaucratic procedures—all designed to improve public trust and operational efficiency.

Accelerated Auction Process

A key element of the reform involves the expedient administration of property auctions. The 2026 budget explicitly calls for the delegation of valuation tasks to private appraisers, a move expected to significantly reduce delays. This adjustment is part of an overall effort to modernize the Ministry, as detailed by the Minister of Interiors in a recent parliamentary presentation available on the official ministerial page.

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Robust Housing Initiatives

The budget not only addresses the technicalities of auction procedures but also outlines far-reaching plans to tackle pressing housing challenges. In response to the soaring costs of home ownership and rising rental rates, a total of 1,476 residential units are slated to enter the market over the next two years—with 251 units offered at affordable prices. In addition, incentives are integrated into programs like the Cypriot Land Development Organization’s initiative, which has already attracted €8 million in private investments aimed at creating economically accessible homes for both purchase and lease.

Localized Investments And Procedural Modernization

The reform agenda also dedicates significant funds to local government support and infrastructural improvements. The state grant for local authorities is set at a cumulative €439 million for 2026-2028, ensuring stability and continuity in municipal services. Simultaneously, a new unit is scheduled to be established within the Department of Urban Planning and Housing to oversee compliance and reinforce transparency, fostering greater public confidence in administrative processes.

Additional Measures And Fiscal Efficiency

Further measures include the introduction of streamlined permitting systems, aimed at reducing the bureaucratic burden on citizens by modernizing or eliminating up to 150 obsolete forms and applications. The budget also allocates resources to preserve cultural heritage, support rural rejuvenation projects exceeding €116 million, and fund community infrastructure upgrades worth €16.7 million. Notably, €6.2 million has been earmarked for the upcoming parliamentary elections, affirming the government’s commitment to transparency and civic participation.

Commitment To Accountability And Growth

The 2026 budget amounts to €779.7 million, reflecting an increase from the 2025 approved plan and nearly €130 million above the expenditures recorded in 2024. With a focus on both developmental and recurrent expenses, the Ministry intends to ensure that over 3,500 families can secure long-term housing solutions more swiftly than ever before. Additionally, the strategic use of European funds—totaling €635.6 million for projects during 2021-2027—further underscores the government’s commitment to fiscal responsibility and sustainable growth.

This comprehensive reform agenda marks a pivotal moment in public administration, reflecting both the urgency of modernizing bureaucratic practices and the imperative to provide affordable housing. By leveraging targeted investments and an accelerated operational framework, the government is poised to deliver a more efficient, transparent, and citizen-focused service delivery model.

The real estate market in Cyprus has demonstrated exceptional resilience, with property transfers totaling nearly €3.5 billion in the first nine months of 2025, according to the Real Estate Agent Registration Council. Sales documents nationwide increased by 13% over the same period last year, with 13,173 documents submitted compared to 11,634 in 2024.

High-Value Investments Drive Sector Growth

Although the number of transfers experienced only a modest rise of 0.74%, the overall transaction value surged by 12.6%, reflecting a clear shift towards higher-value deals. Council President Marinos Kineyirou, whose insights underscore the transformation of the sector, stated that these figures confirm a period of robust and qualitative growth. This trend signals sustained interest from both domestic and international investors, further bolstering confidence in Cyprus as a prime investment destination.

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Regional Analysis: Limassol, Nicosia, And Beyond

Limassol emerged as the market engine, registering the highest transfer value at approximately €1.3 billion—representing nearly 37% of the national total—and leading in the number of sales documents with a 13% annual increase to 4,156 filings. Similarly, Nicosia maintained its role as the domestic powerhouse, recording the greatest number of transfers (4,293) along with a substantial transfer value of €812.8 million. Notably, Nicosia and Larnaca experienced strong momentum, with Larnaca’s sales documents rising by 15%, reflecting expanding buyer confidence in the district.

Further west, Paphos continued to attract foreign investors with a balanced market showing a transfer value of €708.3 million across 2,568 transfers. Even Famagusta, despite recording the lowest figures—792 transfers and €158.3 million in transfer value—demonstrated a promising 10% increase in sales documents, bolstering its reputation as a burgeoning hub for tourism-related investments.

Outlook For 2025 And Beyond

The marked increase in transaction values, in tandem with the steady rise in the volume of sales documents, provides a compelling narrative of strategic high-value investments and enduring market stability. As Cyprus continues to attract both local and international investors, the property market is poised to serve as a key pillar of economic resilience moving forward.

In a recent interview with CNBC at the Web Summit in Lisbon, Oura CEO Tom Hale outlined an ambitious forecast for the Finnish wearables company. With an upgraded outlook following a $900 million funding round in October, Oura now expects nearly $2 billion in sales in the upcoming fiscal year.

Strategic Growth And International Expansion

Oura, valued at $11 billion, has experienced rapid growth in recent years. Hale emphasized that the company’s robust performance is largely attributable to its successful market entry with health features tailored to women and its aggressive international expansion strategy. With revenue on track to hit $1 billion in 2025—doubling the 2024 figures—Oura’s revised forecast represents a significant upward adjustment from the previously reported sales projection of over $1.5 billion. Industry observers are closely monitoring these developments as a marker of the company’s aggressive growth trajectory.

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Leveraging Artificial Intelligence For Preventative Health

Hale described Oura’s integration of artificial intelligence as a core component of its strategy. The company not only offers insights based on wearable data but also employs AI to transform metrics into actionable advice and coaching. The inclusion of the Oura Advisor—a chatbot that acts like a personal doctor—underscores the company’s commitment to delivering personalized, preventative healthcare solutions.

Innovative Partnerships Enhancing Product Capabilities

Oura’s relentless pursuit of innovation is highlighted by its recent partnerships. In 2022, the company joined forces with Natural Cycles to integrate fertility features, building on its established reputation. More recently, collaborations have enabled the addition of glucose monitoring through a partnership with Dexcom (read more), and the company announced new blood pressure research (details here). These strategic moves position Oura as a comprehensive guardian for long-term health—a role that continues to drive its sales performance as it nears a landmark of 5.5 million rings sold since 2015.

Looking To The Future

Despite these bold ambitions and breakthrough innovations, Hale confirmed that there are no immediate plans for an IPO. Instead, the focus remains on leveraging technological advancements such as AI to further cement Oura’s stature in the global wearable tech market.

As Oura continues to blend cutting-edge technology with health and wellness, the company’s forward-looking strategy not only signifies its capacity to achieve near $2 billion in sales but also reflects a broader trend where tech and healthcare converge to deliver personalized benefits to consumers.

Cyprus is poised to expand its employee compensation expenditure by 6.9% in 2025, reaching an estimated €4.1 billion from €3.9 billion in 2024, according to figures released by the Finance Ministry. This rise in payroll costs, which will elevate public sector wages to 11.8% of GDP, is rooted in a blend of automatic and contractual adjustments already embedded in the state budget.

Drivers Behind The Increase

The draft budgetary programme for 2026, submitted to the European Commission on October 15, outlines key factors behind the escalation. The CoLA provision contributes an estimated 1.87 percentage points, while contracts linked to the state health services organization (Okypy) add approximately 1.1 percentage points. Additional factors include a 1% annual increment and increased spending on tips contributing around 0.8 percentage points. A 1.5% general wage increase introduced in October 2024 is projected to further add an estimated 0.4 percentage points.

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Outlook And Fiscal Implications

While employee compensation is expected to rise at a slower pace in 2026—estimated at a 4% increase to €4.3 billion—the current figures for 2025 are a cause for concern. The forecast of zero inflation for 2025 leaves the CoLA unchanged, and the absence of a base effect from the previous year’s increase tempers future growth. Notably, the wage bill as a share of GDP is expected to remain broadly stable, reaching 11.8% in 2025 and slightly easing to 11.7% in 2026.

Policy And Market Challenges

Despite the increase, recent figures indicate a significant deviation from the EU’s new fiscal regulations. With primary expenditure anticipated to surge by 7.9% in 2025—overshooting the annual ceiling of 6% by 1.9 percentage points—the outlook diverges sharply from both the Fiscal Council’s recommendations and governmental commitments under the national plan. The situation is further compounded by ongoing discussions regarding the future of CoLA. Unions are pressing for an increased payment rate starting early 2026 with a phased upward adjustment over 18 months. With salaries forming a substantial portion of primary expenditure alongside pensions, subsidies, and public investments, any new agreements would further strain an already considerable payroll.

Expert Perspectives

During a recent commentary, Michalis Persianis, President Of The Fiscal Council, cautioned that “people tend to make mistakes when conditions look comfortable,” highlighting growing concerns about the current fiscal trajectory. His earlier remarks during the opening of the 2026 budget debate likened the CoLA to an “inflationary burden on the economy,” further emphasizing the risks inherent in rising payroll costs without corresponding improvements in public service quality.

Conclusion

As Cyprus navigates the dual challenges of increased employee compensation and rigorous EU fiscal standards, policymakers face the critical task of balancing economic stability with the demands of public sector remuneration. The coming months will prove decisive in shaping the nation’s fiscal framework and ensuring sustainable economic growth.