The profitability of the banking sector in Cyprus has declined in the first nine months of 2025, while total assets within the banking sector have risen in the third quarter of 2025.
This is according to the updated aggregate Cyprus banking sector data (profitability, balance sheet and capital adequacy data) with reference date 30 September 2025 published by the Central Bank of Cyprus (CBC).
In a press release, the CBC says that the profitability of the banking sector has declined in the first nine months of 2025 by €237m, from €953m in September 2024 to €716m in September 2025. This decrease is primarily driven by a reduction in net interest income.
Total assets within the banking sector have risen in the third quarter of 2025 by €835m or 1.2%, from €66,976m in June 2025 to €67,811m in September 2025. This growth is primarily driven by an increase in loans and advances.
The Common Equity Tier 1 (CET1) ratio of the banking sector has declined in the third quarter of 2025 by 0.2 percentage points, from 26.3% in June 2025 to 26.1% in September 2025.
This decrease is primarily due to an increase of total risk exposure amount, which has outweighed the increase of the CET1 Capital, the press release concludes.
(Source: CNA)
