The Bank of Cyprus' strategy for further market penetration and diversification of its revenues through non-banking services seems to be bearing more and more fruit.
This is clearly reflected in the analysis of the Group's financial results for the first half of the year, a period during which the Bank recorded profits of €252 million.
As specifically stated in the sub-chapter "Enhancing revenues with optimal capital management", the Group remains focused on enhancing revenues with optimal capital management through the increase in quality new lending, growth in market sectors such as insurance operations and digital products, for further market penetration and revenue diversification through non-banking services.
The new lending
According to the analysis, the Group continued to provide quality new lending during the first half of 2026 through prudent practices.
It is noted that the Bank's new lending in Cyprus focuses on selected sectors of the economy that are compatible with its risk profile.
It is recalled that during the six-month period ending 30 June, 2026, new lending remained at high levels, reaching €1.6 billion, due to increased demand for loans from international operations and mortgage loans.
As a result, as of December 2025, the performing loan portfolio increased by 5% to €11.4 billion, reflecting growth across all business lines, supported by the increase in loans in domestic lending, as well as in loans in the international operations sector.
Bond portfolio
At the same time, the bond portfolio continued to grow in 2026 and reached €5.6 billion, representing 19% of total assets.
The largest percentage of the bond portfolio is measured at amortized cost and carries a high average credit rating of Aa3.
It is noted that the bond portfolio measured at amortized cost as of June 30, 2026 generates an unrealized fair value gain of approximately €5 million, equivalent to approximately 5 bp of the Common Equity Tier 1 ( CET1) Ratio, compared to an unrealized fair value loss of €48 million as of March 31, 2026, as the increase in fair value is due to the decrease in interest rates while market volatility remains.
Non-interest income
Furthermore, the Group continues to focus on continuous revenue improvement through multiple initiatives with lower capital requirements, with an emphasis on income from fees and commissions, insurance and other non-banking services, leveraging the Group's digital capabilities.
Based on the above, the Group's non-interest income contributes significantly to its profitability.
Specifically, during the six months ended June 30, 2026, the Group recorded non-interest income of €146 million, up 3% year-on-year, of which recurring non-interest income amounted to €132 million, up 9% year-on-year.
In more detail, in the first half of 2026, net income from fees and commissions amounted to €90 million, increased by 3% year-on-year due to an increase in transactional and non-transactional services.
The contribution of JCC
As the Bank further explains, net income from fees and commissions is boosted by transaction fees from the Group's subsidiary, JCC Payment Systems Ltd (JCC), a leader in the card processing and payment methods industry, which is 75% owned by the Bank.
Based on the results, net fee and commission income from JCC for the six months ended 30 June 2026 constitutes 10% of the Group's non-interest income and amounts to €15 million, up 6% year-on-year, reflecting strong transaction growth and improved management of third-party charges.
Insurance companies
At the same time, the Group's insurance companies , EuroLife and Genikes Insurance (GI), hold a significant position in the life and general insurance sectors respectively in Cyprus, and provide recurring income, remaining important and stable factors in the Group's profitability.
It is recalled at this point that in July 2025, the Group further strengthened its insurance operations by acquiring Ethniki Insurance Cyprus Ltd as part of its strategy to expand its insurance activities and further diversify its business model, with the legal merger of Ethniki Insurance Cyprus Ltd with EuroLife and GI being completed in December 2025.
It is worth mentioning that Ethniki Insurance of Cyprus Ltd held an established position in the life and general insurance sectors in Cyprus, with market shares of 3% and 4% respectively.
Therefore, the net result from insurance operations for the six months ended 30 June 2026 amounted to €33 million, increased by 35% year-on-year, due to the positive claims experience and the reduction in the loss element from life insurance contracts, as well as the acquisition of Ethniki Insurance Cyprus Limited in July 2025, and the increase in new contracts.
Jinius Platform
In addition to the above, the Group with the Digital Economy Platform (Jinius) aims to support the country's digital economy by optimising processes in a more efficient manner, strengthening the Bank's relationships with its customers, creating cross-selling opportunities, as well as creating new sources of income in the medium term, leveraging the Bank's strong market share, know-how and digital infrastructure.
According to the Bank's estimates, Jinius is expected to contribute to the Group by further strengthening its non-interest income, through transaction fees and commissions paid by merchants, while it is also expected to strengthen the Group's digital footprint, connecting e-commerce with financial services.
It is noted that "business-to-business" (B2B) services include electronic invoicing, remittance management, offer management, the ability to find existing and new partners, as well as advertising services.
Currently, however, approximately 1,930 companies have registered on the B2B platform and approximately €1.7 billion in cash was exchanged through the platform during the six months ended June 30, 2026 through electronic invoicing and remittance management services.
Moreover, in February 2024, services that also concern the consumer were implemented, a Product Market Platform (' Marketplace') , with the aim of strengthening contact with customers.
In the six months ended 30 June, 2026, Jinius Marketplace's Gross Merchandise Value (GMV) increased by 160% year-on-year, while active offers increased by 104% year-on-year.
Finally, it is noted that currently, a total of 16 product categories have been added to the Marketplace, such as fashion, technology, gadgets, toys, beauty, health and wellness, personal care devices, luggage and travel equipment, DIY, home and garden, air conditioning and heating, white goods and bookstore.
(Source: InBusinessNews)
