The Bank of Cyprus (BoC) has released its financial results for 2025, reporting a profit after tax of €481 million as well as increased lending activity.
The bank achieved record new lending of €3 billion, marking an increase of 23% year-on-year.
“2025 was another strong year for Bank of Cyprus, demonstrated by our financial and operational performance,” Bank of Cyprus CEO Panicos Nicolaou commented, adding, “Our performance was further supported by cost efficiency, robust liquidity and healthy asset quality."
According to the bank’s financial results, gross performing loans reached €10.9 billion, up 8% year-on-year.
The bank’s predominantly retail deposit base rose to €22.2 billion, also up 8% year-on-year.
Also, profit after tax amounted to €481m for the full year, with €128m generated in the fourth quarter of 2025, the report said, with Nicolaou noting, “Gross performing loans and our predominantly retail deposits both increased by 8 per cent year-on-year to €10.9 bn and €22.2 bn, respectively.”
“We exceeded our target of circa 4% loan growth for 2025 as healthy domestic credit activity was complemented by the continued growth in our international loan book,” the CEO added.
On the bank’s lending activity, Nicolaou stated that the growth was “driven mainly by corporate and international demand.“
Return on tangible equity stood at 18.6% for the financial year 2025, while basic earnings per share totalled €1.10.
The cost to income ratio remained low at 37%, reflecting continued cost discipline.
The balance sheet remained liquid and resilient, with the non-performing exposures ratio reduced to 1.2%.
Cost of risk remained low at 33 basis points, the bank reported. The liquidity coverage ratio stood at 321%, supported by surplus liquidity of €9.2 billion.
What is more, the bank reported a CET1 ratio of 21.0% and a total capital ratio of 25.9%.
Organic capital generation reached 436 basis points during the year. At the same time, tangible book value per share increased by 6% year-on-year to €6.10.
Total distribution for the year reflected a 70% payout ratio, amounting to €305m in cash dividends.
Nicolaou commented, “In line with our ongoing commitment to providing sustainable shareholder returns, we are delivering on our promises and today we are pleased to propose a final dividend of €0.50 per ordinary share bringing the total distribution for FY2025 to €305m.”
“The total distribution reflects a 70% payout ratio, at the top-end of our 2025 distribution policy, and corresponds to €0.701 per ordinary share,” he added.
“This year’s distribution will be fully in cash, representing a significant increase in both the payout ratio and total quantum compared to the previous year,” he stated.
“In total,” the Bank of Cyprus CEO continued, “we have now delivered almost €550m of cumulative distributions over the last two financial years, demonstrating our track record of increasing and sustainable shareholder value creation.”
“As the leading financial services group in Cyprus, serving three quarters of the population, we operate in a resilient economy whose growth continues to outpace the Eurozone average,” Nicolaou said.
Citing the latest projections from the Finance Ministry, Nicolaou also pointed out that Cyprus is expected to see its GDP grow by 3.1 per cent in 2026, in real terms, compared to 1.2 per cent for the Eurozone.
He went on to announce that the bank will host an investor update on 3 March where it will outline its strategic priorities and new financial targets for the years ahead.
“We remain committed to supporting our customers and the broader Cypriot economy, while maintaining an unparalleled focus on continuing to deliver attractive returns to our shareholders,” the CEO concluded.
