Bank of Cyprus' net profits amounted to €353 million for the first nine months of 2025, while new loans exceeded €2.2 billion, recording an increase of 31% compared to the same period last year.
The Bank of Cyprus' financial results for the first nine months of 2025 were presented during a press conference held at the bank's headquarters in Nicosia on Teusday, 11 November.
During his presentation, Bank of Cyprus CEO, Panicos Nicolaou, reported that the Bank's net profits for the first nine months of 2025, amounted to €353 million - €0.81 per share.
He added that the Bank continued to perform exceptionally well in granting new loans, which exceeded €2.2 billion in the last nine months, an increase of 31% compared to the same period last year, which, he said, demonstrates "the very important role of Bank of Cyprus in financing the Cypriot economy."
He also said that, in addition to new lending, the performing loan portfolio reached €10.7 billion, up by 6% compared to the beginning of the year. Similarly, deposits reached €21.5 billion, an increase of 7% on an annual basis, while the bank's non-performing loans fell to 1.2%, a percentage which, according to Nikolaou, is "the best performance in Cyprus and Greece, well below the European average."
In addition, he said that the cost-to-income ratio was 35%, "an indication of the Bank's efficiency," while the total capital adequacy ratio was 25.4%, "well above the minimum capital requirements."
"So we have a profitable bank, with a Return on Total Equity (ROTE) of 18.4%, very high capital and high liquidity, which also rewards its shareholders," he pointed out.
He further recalled that in October, the Bank paid a dividend of €0.20 per share, which, when added to the €0.48 paid as a dividend in June, means that the total dividend paid this year by Bank of Cyprus is €0.68 per share, while the target distribution ratio for 2025 remains at 70%.
He also described the use of the bank's digital channels as impressive, with almost 500,000 active users. "I strongly believe in technology, and it is something that I think sets us apart and enables us to operate as a bank with lower costs," he noted.
Asked about the factors driving the increase in new loans, Nikolaou said that the increase was mainly supported by demand for loans to businesses and in the international operations sector, noting that the loan base is within Cyprus.
Asked about the relative decline in interest income, he said that despite the European Central Bank's interest rate cuts, income remained almost stable due to the increase in the volume of loans and deposits.
Invited to comment on the new banking landscape in Cyprus, he expressed optimism about the Bank of Cyprus model and its progress in the field of technology. "Competition is something that concerns us, but I don't think it's competition between banks; in the coming years, competition will mainly come from technology," he noted. Asked about the Bank's next steps in the digital transition, he said that so far the focus has been on private clients, who are now provided with a full range of services through the Bank of Cyprus digital application.
He added that in the coming period, the focus will be mainly on companies and businesses, offering, for example, the possibility of taking out loans via mobile phone or opening a new account following the same procedure as for private individuals.
Furthermore, he said that a chatbot application, through which customers will be able to submit any questions they may have about the Bank,is expected to be available in the first quarter of 2026,.
Furthermore, according to a Bank of Cyprus press release, taking into account the Ministry of Finance's forecasts for Cyprus's growth rate to increase by 3.2% in 2025, the Bank is raising its 2025 ROTE target today to high-teens from mid-teens, expecting ROTE based on 15% CET1 ratio to exceed 20% in 2025.
"The disciplined execution of our strategy, our track record of delivery on our targets, and our strong levers reinforce our confidence in the outlook, and we look forward to updating our strategy and financial targets in the first quarter of 2026. We remain committed to supporting our customers and the broader Cypriot economy, with an unparalleled focus on continuing to deliver attractive returns to our shareholders," the press release concluded.
(Source: CNA)
