Bank of Cyprus reported profit after tax of €121 million for the first quarter of 2026, boosted by strong lending growth, stable deposits and robust capital levels.
The bank said new lending reached €829 million in the quarter, up 9% from the previous quarter, while its performing loan book rose 2% to €11.1 billion.
Deposits, the majority of which come from retail customers, remained broadly unchanged at €22.3 billion, while basic earnings per share stood at €0.28 and the cost-to-income ratio was 37%.
The lender also said its non-performing exposures ratio fell to 1.1%, while loan credit losses were a net credit of 17 basis points, reflecting a reversal linked to a specific client.
Bank of Cyprus highlighted its strong capital position, with a Common Equity Tier 1 ratio of 20.7% and a total capital ratio of 25.5%, supported by organic capital generation of 114 basis points.
Chief executive Panicos Nicolaou said the bank started the year strongly and remains “in a position of strength” despite global geopolitical uncertainty and its impact on the Cypriot economy.
He added that the bank’s strategy includes targeted acquisitions, including a deal with the Cyprus Development Bank for a portfolio of performing loans and deposits, as well as a 26% investment in Wealthyhood, a pan-European technology company offering digital access to shares and ETFs.
Nicolaou also said Cyprus’s economy remains resilient, with official forecasts pointing to growth of between 2.7% and 2.9% in 2026, while the bank continues to target mid-teens return on tangible equity over 2026–2028 and payouts of up to 90% of 2026 profit.
(Source: InBusinessNews)
