Banking sector profitability declines by €47m to €1.215b in 2024

14:29 - 02 April 2025

Financial Services Reporter

Banking sector's profitability stood at €1.215 billion in December 2024, according to updated aggregate Cyprus banking sector data with reference date 31 December 2024, published by the Central Bank of Cyprus.

According to the CBC, the profitability of the banking sector has declined in 2024 by €47 million or 3.7%, from €1.262 billion in December 2023 to €1.215 billion in December 2024. This decrease is primarily driven by a reduction in net gains from exchange differences, an increase in administrative expenses and a decline in dividend income.

Total assets within the banking sector have risen in 2024 by €469 million or 0.7%, from €65.169 billion in December 2023 to €65.638 billion in December 2024. CBC notes that this growth is largely attributed to an increase in debt securities as well as loans and advances.

The Common Equity Tier 1 (CET1) ratio of the banking sector has improved in 2024 by 3%, rising from 21.5% in December 2023 to 24.5% in December 2024. According to the CBC, this increase is primarily due to a growth in Common Equity Tier 1 capital, which has outweighed the rise in the total risk exposure amount.

(Source: CNA)

Banking sector profitability declines by €47m to €1.215b in 2024

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