Bank of Cyprus reports €481m after-tax profit, record lending growth

The Bank of Cyprus (BoC) on Wednesday released its financial results for 2025, reporting a profit after tax of €481 million and increased lending activity.

Specifically, the bank achieved record new lending of €3 billion, marking an increase of 23 per cent year-on-year.

“2025 was another strong year for Bank of Cyprus, demonstrated by our financial and operational performance,” said Bank of Cyprus CEO Panicos Nicolaou.

“Our performance was further supported by cost efficiency, robust liquidity and healthy asset quality,” he added.

According to the bank’s financial results, gross performing loans reached €10.9 bn, up 8 per cent year-on-year.

The bank’s predominantly retail deposit base rose to €22.2 bn, also up 8 per cent year-on-year.

Furthermore, profit after tax amounted to €481m for the full year, with €128m generated in the fourth quarter of 2025.

“Gross performing loans and our predominantly retail deposits both increased by 8 per cent year-on-year to €10.9 bn and €22.2 bn, respectively,” Nicolaou stated.

“We exceeded our target of circa 4 per cent loan growth for 2025 as healthy domestic credit activity was complemented by the continued growth in our international loan book,” he added.

In terms of the bank’s lending activity, Nicolaou stated that the growth was “driven mainly by corporate and international demand“.

Return on tangible equity stood at 18.6 per cent for the financial year 2025, while basic earnings per share totalled €1.10.

The cost to income ratio remained low at 37 per cent, reflecting continued cost discipline.

The balance sheet remained liquid and resilient, with the non-performing exposures ratio reduced to 1.2 per cent.

Cost of risk remained low at 33 basis points, the bank reported. The liquidity coverage ratio stood at 321 per cent, supported by surplus liquidity of €9.2 bn.

What is more, the bank reported a CET1 ratio of 21.0 per cent and a total capital ratio of 25.9 per cent.

Organic capital generation reached 436 basis points during the year. At the same time, tangible book value per share increased by 6 per cent year-on-year to €6.10.

Total distribution for the year reflected a 70 per cent payout ratio, amounting to €305m in cash dividends.

“In line with our ongoing commitment to providing sustainable shareholder returns, we are delivering on our promises and today we are pleased to propose a final dividend of €0.50 per ordinary share bringing the total distribution for FY2025 to €305m,” said Nicolaou.

“The total distribution reflects a 70 per cent payout ratio, at the top-end of our 2025 distribution policy, and corresponds to €0.701 per ordinary share,” he added.

“This year’s distribution will be fully in cash, representing a significant increase in both the payout ratio and total quantum compared to the previous year,” he stated.

“In total,” the Bank of Cyprus CEO continued, “we have now delivered almost €550m of cumulative distributions over the last two financial years, demonstrating our track record of increasing and sustainable shareholder value creation.”

“As the leading financial services group in Cyprus, serving three quarters of the population, we operate in a resilient economy whose growth continues to outpace the Eurozone average,” Nicolaou said.

Citing the latest projections from the Finance Ministry, Nicolaou pointed out that Cyprus is expected to see its GDP grow by 3.1 per cent in 2026, in real terms, compared to 1.2 per cent for the Eurozone.

He also revealed that the bank will host an investor update on March 3, 2026, where it will outline its strategic priorities and new financial targets for the years ahead.

“We remain committed to supporting our customers and the broader Cypriot economy, while maintaining an unparalleled focus on continuing to deliver attractive returns to our shareholders,” Nicolaou concluded.