The Bank of Cyprus has continued its strong performance, accompanied by very high profits and increased liquidity, for another quarter, something which allows it to significantly contribute to the country's economy, providing loans to businesses and households.
In fact, according to the financial results of the first half of the year, in the January-June period the bank granted new loans totaling €1.6 billion, which is an increase of 31% on an annual basis.
Specifically, and according to the results, new lending in Cyprus in the second quarter of 2025 amounted to €760 million, compared to strong new lending of €842 million for the first quarter of 2025, which was positively affected by seasonality, and €727 million for the fourth quarter of 2024.
As shown by the data provided by the bank, the new lending granted during the second quarter consisted of loans to large enterprises amounting to €279 million, loans to individuals (retail banking) amounting to €223 million, of which housing loans amounting to €141 million, loans to small and medium-sized enterprises amounting to €70 million and loans in the international business sector amounting to €188 million.
Accordingly, in the first quarter, loans to large enterprises amounting to €430 million, loans to individuals (retail banking) amounting to €202 million, of which housing loans amounting to €114 million, loans to small and medium-sized enterprises amounting to €71 million and loans in the international business sector amounting to €139 million were provided.
Therefore, out of the total €1.6 billion in loans granted in the first half of the year, €709 million related to loans to large enterprises, €425 million to individuals (retail banking), of which €255 million were mortgage loans, €141 million to small and medium-sized enterprises and €327 million to international operations.
After the addition of the new lending, Bank of Cyprus' gross loans amounted to €10.794 million as of June 30, 2025, compared to €10.600 million as of March 31, 2025 and €10.374 million as of December 31, 2024, up 4% since the beginning of the year, mainly due to increased demand for loans in the international operations sector and for loans to businesses.
At the same time, the bank's performing loan portfolio increased by 5% since the beginning of the year and amounted to €10.66 billion.
Furthermore, based on the results, as of June 30, 2025, Bank of Cyprus' net loans and advances to customers amounted to €10.578 million, compared to €10.387 million on 31 March, 2025 and €10.114 million on 31 December, 2024, increased by 5% since December 2024.
Loan portfolio quality
It is noted that, in parallel with the granting of new loans, the Bank of Cyprus is focusing its attention mainly on maintaining quality new lending through strict practices and preventing deterioration in the quality of the loan portfolio.
Based on the results, loan credit losses for the second quarter of 2025 amounted to €9 million, compared to €10 million for the first quarter of 2025, and amount to €19 million for the first half of 2025.
NPLs at their lowest point
Regarding the non-performing loans of Bank of Cyprus, based on the European Banking Authority, these decreased by €2 million or 1% in the second quarter of 2025, to €188 million as of 30 June, 2025, compared to €190 million as of March 31, 2025 and €255 million as of 31 December, 2024.
As a result, NPLs represent 1.7% of total gross loans as of 30 June, 2025, compared to 1.8% as of March 31, 2025 and 2.5% as of 31 December, 2024.
At the same time, the NPL coverage ratio reached 124% as of June 30, 2025, compared to 122% as of 31 March, 2025 and 100% as of 31 December, 2024.
It is recalled that, in September 2024, the bank reached an agreement with investment funds affiliated with Cerberus Global Investments BV for the sale of a portfolio of non-performing loans, which mainly concerned secured loans to businesses, with a contractual balance of approximately €149 million and a gross book value of approximately €27 million as of 30 June, 2024.
In December 2024, the Bank reached another agreement with investment funds affiliated with Cerberus Global Investments BV for the sale of a portfolio of non-performing loans, which mainly concerned secured loans to individuals and small and medium-sized enterprises, with a contractual balance of approximately €193 million and a gross book value of approximately €39 million as of 31 December 2024.
As of 31 December, 2024, the transactions were classified as non-current assets and disposal groups held for sale and their gross carrying amount and net carrying amount amounted to €55 million and €23 million, respectively.
These transactions were completed in the first quarter of 2025 with a neutral impact on both the income statement and the capital position of Bank of Cyprus.
After the latest moves, overall from their peak in 2014, NPLs have decreased by €14.8 billion or 99% to €0.2 billion and the NPL-to-loan ratio by 61 percentage points, from 63% to below 2%.
(Source: InBusinessNews)
