The profitability of the banking sector declined in the first three months of 2026 by 23.6% compared to last year, according to the Central Bank of Cyprus.
The CBC has published the updated aggregate Cyprus banking sector data (profitability, balance sheet and capital adequacy data) with a reference date of 31 March 2026.
In a press release, it said that the profitability of the banking sector has declined in the first three months of 2026 by €62m or 23.6% to €202m from €264m in March 2025.
This decrease, it noted, is primarily driven by a reduction in net interest income (NII) and exchange differences loss.
Total assets within the banking sector have risen in the first quarter of 2026 by €274m or 0.4%, to €70,235m in March 2026 from €69,961m in December 2025.
This growth, the CBC said, is largely attributed to an increase in loans and advances and debt securities.
Meanwhile, the Common Equity Tier 1 (CET1) ratio of the banking sector declined in March 2026 by 0.7 percentage points to 25.1%, from 25.8% in December 2025.
This decrease is mainly due to an increase in total risk exposure amount which has outweighed the increase of CET1 Capital, the CBC concluded.
(Source: CNA)
