Profits down for Cyprus banks in Q1; but capital and total assets increased

13:50 - 16 July 2025

Financial Services

The Cypriot banking sector saw a dip in profitability but posted gains in total assets and capital strength during the first quarter of 2025, according to updated data published by the Central Bank of Cyprus (CBC).

The figures, for the period up to 31 March 2025 , cover profitability, balance sheet, and capital adequacy indicators.

The profitability of the banking sector declined in the first quarter of 2025 by €82 million, from €346 million in March 2024 to €264 million in March 2025. This decrease is primarily driven by a reduction in net interest income.

Total assets in the banking sector rose by €422 million or 0.6% during the same period, from €65,604 million in December 2024 to €66,026 million in March 2025. This increase is mainly attributed to higher volumes of loans and advances, as well as debt securities.

The Common Equity Tier 1 (CET1) ratio improved by 1.3 percentage points in the first quarter of 2025, rising from 24.7% at the end of 2024 to 26.0% in March 2025. This increase was primarily due to a reduction in the total risk exposure amount, which outweighed the slight decrease in CET1 capital.

Profits down for Cyprus banks in Q1; but capital and total assets increased

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