Cyprus Fiscal Surplus Falls To €594.3 Million In Jan–Feb

Overview Of Fiscal Performance

Cyprus recorded a general government surplus of €594.3 million in January–February, equal to 1.5% of GDP, according to preliminary data from Cystat. The figure declined from €663.4 million, or 1.8% of GDP, in the same period last year.

Revenue Highlights

Total revenue reached €2.71 billion, up €23.4 million, or 0.9%, year over year. Income and wealth taxes increased by €32.7 million to €842.6 million, a 4% rise. Social contributions grew 2.2%, from €817.5 million to €835.1 million. Current transfers increased 3.3%, adding €1.4 million.

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Shifts In Production And Tax Collections

Taxes on production and imports declined by €12.8 million, or 1.6%, to €802.7 million. Net VAT revenue increased 3.9%, rising by €21.7 million to €580.7 million. Property income fell 19.5% to €10.7 million. Revenue from goods and services declined 6.6% to €173.6 million, while capital transfers decreased 17.5% to €3.3 million.

Expenditure Trends

Total expenditure reached €2.11 billion, up €92.5 million, or 4.6%, compared with the previous year. Intermediate consumption increased slightly to €192.5 million. Employee compensation rose 1.2% to €644.2 million. Social benefits increased 5.3% to €898.5 million, while current transfers rose 38.5% to €187.4 million.

Capital And Other Expenditures

Capital expenditure declined by €11.0 million, or 8.4%, to €119.5 million. Gross capital formation fell 13.5% to €85.5 million. Other capital spending increased 7.3% to €34.0 million. Interest payments remained stable at €68.1 million, while subsidies declined to €6.8 million.

Looking Ahead

Cystat said some data, particularly from local government entities, remain provisional due to incomplete submissions. Revisions may follow as additional data becomes available.

The Future Forbes Realty Global Properties

Alpha Bank Reports Strong Underlying Q1 Performance Despite Capital Pressure

by THEFUTURE.TEAM

May 25, 2026

Robust Operational Performance

Alpha Bank’s first quarter 2026 report demonstrates a solid operational foundation, as confirmed by analyses from leading institutions such as Citi, JPMorgan, Jefferies, and Deutsche Bank. Despite an accounting impact from extraordinary one-off costs, the bank’s commercial momentum remains unmistakable, driven notably by fee income and resilient net interest margins.

Capital Position And Extraordinary Items

Quarterly results were weighed down by a lower-than-expected capital ratio and a €47 million expense linked to a voluntary exit program affecting around 350 employees. As a result, net profit totaled €182 million, falling 9% below market consensus. At the same time, the restructuring initiative is expected to generate annual savings of approximately €15 million.

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Operating Metrics And Investor Insights

Analysts highlighted the strength of Alpha Bank’s underlying operations after adjusting for extraordinary items. Adjusted net profit reached €221 million, exceeding market expectations by 2%. Fee income increased 29% year-on-year to €140 million, supported by higher revenue from business lending fees, insurance services, investment banking and wealth management activities. Performing exposures and assets under management also reached record levels during the quarter, reinforcing the bank’s efforts to diversify revenue streams beyond interest income.

Market Valuation And Sector Commentary

Market commentary following the results remained broadly positive despite pressure on some balance-sheet metrics. JPMorgan described the quarter as showing underlying strength, while Deutsche Bank and Jefferies maintained buy recommendations with target prices reaching €4.85. At the same time, analysts continued to monitor pressure on net interest margins and dilution in common equity tier 1 ratios as banks adapt to changing market conditions.

Strategic Outlook

Alpha Bank is expected to provide additional details on its medium-term strategy during its investor day scheduled for the second half of 2026. Key areas of focus are expected to include the sustainability of fee income growth, capital trajectory management and shareholder returns. The bank has also maintained its earnings per share target of €0.40 for 2026, representing projected year-on-year growth of 11%.

First-quarter results highlighted Alpha Bank’s ability to maintain operational momentum despite pressure from one-off costs and capital-related challenges. Growth in fee-based activities and continued expansion in assets under management also reflected the bank’s broader effort to strengthen revenue diversification across its business segments.

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