The Central Bank of Cyprus has published updated aggregate data on the profitability, balance sheet and capital adequacy of the domestic banking sector, with reference date 30 June, 2025.
According to the figures, the sector’s profitability declined in the first half of 2025, with net profits falling by €25 million to €578 million, compared with €603 million in June 2024. The decrease was mainly driven by lower net interest income.
By contrast, total assets expanded in the second quarter of the year, rising by €950 million, or 1.4%, from €66.03 billion in March 2025 to €66.98 billion in June. The growth was primarily attributed to an increase in loans and advances.
The sector’s capital position also strengthened, with the Common Equity Tier 1 (CET1) ratio improving by 0.4 percentage points to 26.3% at the end of June, from 25.9% in March. This improvement was mainly due to an increase in CET1 capital, which outweighed the rise in total risk exposure.
(Source: CNA)
