Cyprus Q4 2025 Deficit Deepens Amid Persistent Structural Challenges

by THEFUTURE.TEAM

April 10, 2026

Overview Of The Financial Landscape

Eurostat data show Cyprus recorded a current account deficit of €0.8 billion in the fourth quarter of 2025, widening from €0.10 billion in the third quarter. The increase indicates a rise in external imbalances during the period. Compared with Q4 2024, when the deficit reached €1.40 billion, the latest figure reflects a partial year-on-year improvement.

Trends Throughout 2025

Cyprus recorded a current account deficit in each quarter of 2025. Deficits stood at €1.00 billion in Q1 and €0.40 billion in Q2, before narrowing in Q3 and widening again in Q4. The pattern indicates continued reliance on external financing, with only limited improvement during the year.

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European Union: Contrasting Fortunes

The European Union recorded a current account surplus of €86.70 billion in Q4 2025, equal to 1.8% of GDP. This compares with €65.40 billion (1.4% of GDP) in Q3 2025 and €98.20 billion (2.1% of GDP) in Q4 2024. Changes across components varied. The goods surplus declined to €89.10 billion from €95.30 billion, while the services surplus increased to €44.20 billion from €20.50 billion. Primary and secondary income balances also improved during the period.

Global Trade And Investment Dynamics

The EU recorded its largest current account surplus with the United Kingdom at €63.30 billion. Additional surpluses were reported with Switzerland (€22.90 billion), offshore financial centres (€21.00 billion), Canada (€11.30 billion), and Brazil (€11.20 billion). Deficits were highest with China (€54.20 billion) and the United States (€14.60 billion).

Investment And Bankable Performance

Direct investment assets increased by €85.20 billion, while liabilities rose by €32.60 billion, resulting in net outflows of €52.60 billion. Portfolio investment recorded net inflows of €173.50 billion. Other investment flows added €6.10 billion.

Diverse Economic Positions Across Member States

External balances varied across EU countries. Seventeen member states recorded current account surpluses, nine posted deficits, and one remained balanced. Germany reported a surplus of €51.30 billion, followed by the Netherlands (€34.50 billion), France (€21.80 billion), Denmark (€15.20 billion), and Ireland (€12.80 billion). Spain (€10.30 billion) and Sweden (€7.10 billion) also recorded surpluses. Largest deficits were recorded in Romania (€8.30 billion), Greece (€7.00 billion), Belgium (€3.90 billion), and Bulgaria (€3.80 billion).

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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