“We delivered excellent financial results in 1H2026, reflecting our diversified and efficient business model and continued strong performance," Bank of Cyprus CEO Panicos Nicolaou has said.
In his statement within the Bank's results for the first half of 2026, he continued, "Our strategy execution drove solid lending and deposit growth. Cost management remained disciplined, evidenced by a cost to income ratio of 36%. Asset quality continued to be healthy with the NPE ratio declining to 1%. Overall, profit after tax reached €252m for the first half of 2026, up 7% year-on-year, and ROTE stood at 18.8%, above our mid-teens full-year target, on a strong capital base."
Nicolaou also noted that the Bank's loan book expanded by 8% year-on-year and by 5% year-to-date, driven both by domestic and international demand.
"Our predominantly retail-funded deposit base increased by 9% year-on-year and by 3% year-to-date to €22.8 bn as at 30 June 2026. Our business continued to deliver strong organic capital generation of 225 bps in 1H2026, supporting our balance sheet position. After accruing an ordinary distribution at a 70% payout ratio, at the top-end of our Distribution Policy, our CET1 ratio and total capital ratio stood at 20.9% and 25.8% respectively," he went on to say.
As Nicolaou noted, "The Cypriot economy remains robust despite ongoing global uncertainty with tourism in June 2026 recovering gradually to 2025 record levels. Recent official forecasts suggest GDP growth of around 2.5% for 2026, well ahead of average Eurozone growth expectations."
"Today," he continued, "We are pleased to announce an interim dividend of €0.24 per ordinary share, equivalent to a 44% payout ratio from 1H2026 earnings, representing an increase of 20% year-on-year. We remain committed to our distribution target for 2026 for an ordinary dividend of 70% payout ratio at the top-end of our Distribution Policy and a top-up dividend of up to 20%."
"Capitalising on the strength of our performance in the first half of 2026, as well as higher interest rate expectations, we are confident in achieving an ROTE towards the upper end of our mid-teens range target in 2026. Our commitment remains unchanged; to support our customers and the broader Cypriot economy, while continuing to deliver attractive and sustainable returns and creating value for our shareholders,” he concluded.
Click here to see the results in more detail.
