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CIFA: A Year Of Strategic Growth And Opportunity For Investment Funds In 2025

The Cyprus Investment Funds Association (CIFA) is stepping into 2025 with renewed confidence, building on the significant achievements of the past years. Despite the global uncertainties that continue to unfold, Cyprus’ Investment Funds sector has firmly established itself as a vital contributor to the nation’s economic and social prosperity.

In 2024, Cyprus reached a major milestone, surpassing €9.3 billion in assets under management. This remarkable achievement highlights the sector’s impressive growth and resilience. The year also marked an expansion of Cyprus’ global presence, attracting new fund managers and investment opportunities, further cementing its status as a leading European hub for Investment Funds. This success was driven by strategic collaborations and the dedicated efforts of professionals within the sector, fostering the creation of specialized job roles and reinforcing Cyprus’ position as a robust financial centre.

Looking ahead to 2025, CIFA remains fully committed to promoting Cyprus as the premier destination for global investment funds. By working alongside key stakeholders, including the Ministry of Finance, the Cyprus Securities and Exchange Commission, and Invest Cyprus, CIFA aims to enhance the regulatory framework and drive innovative solutions for the industry. The timely approval of pending legislation that modernizes regulatory processes and introduces new investment structures is crucial for unlocking the full potential of the sector. These updates will provide the industry with the necessary tools to stay competitive and aligned with international best practices. CIFA urges all stakeholders to prioritize this agenda to ensure Cyprus continues to attract high-quality investments and talent.

In addition, CIFA recognises the importance of equipping individuals and businesses with essential financial knowledge. In 2025, the association plans to roll out initiatives designed to boost financial literacy across Cyprus. These will include workshops, partnerships, and digital campaigns aimed at enhancing understanding of investment funds and financial planning. By empowering citizens and professionals with the knowledge to make informed financial decisions, CIFA is contributing to the long-term economic resilience of Cyprus.

Maria Panayiotou, President of CIFA, shares her outlook for the year: “The success of the Investment Funds sector is a reflection of our adaptability, innovation, and ability to thrive in a competitive global market. In 2025, our focus will be on sustainability, technology-driven solutions, and strengthening our partnerships across markets. Our goal is to drive economic growth while delivering lasting value for society. With the combined expertise and dedication of our sector, I am confident that we will continue to play a transformative role in Cyprus’ economy, fostering resilience and creating opportunities for all.”

As Cyprus embarks on a year of revitalisation and resilience, CIFA remains steadfast in advocating for the interests of its members, elevating Cyprus on the international stage, and supporting initiatives that promote sustainable development within the financial sector. The association calls on all stakeholders to collaborate in advancing the innovation, sustainability, and resilience that will define Cyprus’ financial future.

Bank Of Cyprus Approves 2025 Results With €3 Billion Lending And €481 Million Profit

Robust Growth And Strategic Initiatives

Bank of Cyprus said its board approved the annual financial report for the year ended December 31, 2025, including audited consolidated results for the group. The report covers Bank of Cyprus Holdings Public Limited Company, Bank of Cyprus Public Company Limited, and subsidiaries. The document is available through the bank’s investor relations platform.

Impressive Lending Volume And Financial Performance

New lending reached €3 billion, up 23% year on year. Gross performing loans increased to €10.9 billion, rising 8%. Retail deposits grew to €22.2 billion, also up 8%. Profit after tax totaled €481 million, including €128 million in the fourth quarter. Return on tangible equity stood at 18.6%, while basic earnings per share reached €1.10.

Operational Efficiency And Resilience

Cost to income ratio was 37%, reflecting operating efficiency. Non-performing exposure ratio stood at 1.2%, while cost of risk was 33 basis points. Liquidity coverage ratio reached 321%, supported by surplus liquidity of €9.2 billion.

Enhanced Capital And Stress Test Performance

Common equity tier 1 ratio stood at 21.0%, while total capital ratio reached 25.9% as of December 31, 2025. Capital levels were supported by profitability despite distributions and business growth. The bank participated in the 2025 European Central Bank supervisory stress test and reported results above the average of participating institutions. Regulatory buffers are set to increase, with the countercyclical buffer rising from about 0.90% to 1.50% and the systemically important institution buffer from 1.9375% to 2.25% starting January 2026.

Shareholder Value And Dividend Policy

The bank targets a payout ratio between 50% and 70%. Total distribution for 2025 reached €305 million, equal to 70% of adjusted recurring profitability. This includes a cash dividend of €0.70 per share. An interim dividend of €0.20 per share was paid in October 2025. A final dividend of €0.50 per share is proposed for approval at the annual general meeting on May 15, 2026, compared with €0.48 per share in 2024. A share buyback programme resulted in the cancellation of more than 5.1 million shares at an average price of €5.83.

Strategic Acquisitions And Future Outlook

Recent developments include a minority investment in Wealthyhood and the acquisition of a performing loan portfolio and deposits from Cyprus Development Bank Public Company Limited. These transactions expand the bank’s portfolio alongside existing liquidity and capital levels.

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