Bank of Cyprus Confirms Strong 2025 Performance with Robust Profitability and Capital Strength

The Bank of Cyprus announced on Wednesday that its board of directors has formally approved the annual financial report for the year ending December 31, 2025, reaffirming a year marked by solid profitability, sustained lending expansion and a strong capital base. The report incorporates the audited financial statements of the Bank of Cyprus Group, which includes the holding company, Bank of Cyprus Public Company Limited and its subsidiaries.

The full annual financial report has been published on the group’s official website, making it accessible to both investors and the wider public. This follows the bank’s earlier disclosure of its financial results on March 31, 2026, accompanied by an investor presentation outlining its strategic direction and future outlook.

These results already reflected updates provided in the investor briefing released on March 3, 2026, as well as subsequent developments such as a minority investment in Wealthyhood and the acquisition of a performing loan and deposit portfolio from Cyprus Development Bank Public Company Limited. The bank confirmed that there were no significant differences between the final audited figures and the preliminary results published on February 18, 2026.

For the full year 2025, the Bank of Cyprus recorded a profit after tax of €481 million, with €128 million generated during the fourth quarter alone. Reflecting on the results at the time of their initial release, chief executive officer Panicos Nicolaou stated, “2025 was another strong year for Bank of Cyprus, demonstrated by our financial and operational performance.” He further noted, “Our performance was further supported by cost efficiency, robust liquidity and healthy asset quality.”

The bank achieved a record level of new lending, reaching €3 billion, which represents a 23 per cent increase compared with the previous year. Gross performing loans rose to €10.9 billion, marking an 8 per cent annual increase, while the bank’s largely retail-based deposit base grew to €22.2 billion, also up by 8 per cent year-on-year. According to the chief executive, this lending growth was primarily driven by demand from corporate clients and international business activity.

Return on tangible equity stood at 18.6 per cent, while basic earnings per share reached €1.10 for the year. The institution maintained a cost-to-income ratio of 37 per cent, reflecting continued efficiency in managing operational expenses.

The bank’s balance sheet remained both liquid and resilient, with the ratio of non-performing exposures reduced further to 1.2 per cent. The cost of risk remained low at 33 basis points, while the liquidity coverage ratio reached 321 per cent, supported by surplus liquidity amounting to €9.2 billion. In terms of capital strength, the group reported a Common Equity Tier 1 capital ratio of 21.0 per cent and a total capital ratio of 25.9 per cent, underscoring its robust financial position.

In addition to financial performance, the annual report outlines the group’s exposure to a range of risks, including credit, liquidity, market and operational risks, as well as broader external challenges such as geopolitical tensions, cybersecurity threats and climate-related issues. The bank emphasized that it actively identifies, monitors and mitigates these risks through comprehensive control and risk management frameworks, while acknowledging that not all risks can be fully anticipated or controlled.

The report also provides transparency regarding related-party transactions involving subsidiaries, associates, directors and key management personnel, noting that all such dealings are conducted under normal commercial terms. During 2025, the group had 11 directors, five of whom made use of credit facilities, with three maintaining outstanding balances at the end of the year. The group also reported 20 key management personnel, all of whom utilised credit facilities during their tenure, with outstanding balances recorded at the end of both 2025 and 2024. These transactions remained below 1 per cent of the group’s net assets, and no claims were waived during the reporting period.

The board of directors reaffirmed its responsibility for the preparation of the financial statements in accordance with International Financial Reporting Standards as adopted by the European Union, as well as relevant company law requirements. It stated that the financial statements present a true and fair view of the group’s financial position and performance, and that the annual report as a whole is fair, balanced and understandable for shareholders.

Furthermore, the board confirmed its responsibility for maintaining proper accounting records, implementing effective internal controls and safeguards against fraud, and preparing a sustainability statement aligned with European reporting standards. The company also noted that its accounting records are maintained at its registered offices in Dublin and Nicosia, ensuring full compliance with applicable legal and regulatory obligations.

By fLEXI tEAM