The Bank of Cyprus announced on Tuesday that its profit for the first nine months of 2025 fell by 12% compared to the same period last year. This drop, which brought profit after tax to €353 million, was mainly because the bank earned less from interest on loans. However, despite this challenge, the bank expressed strong confidence about its future. It even raised its full-year targets, increased dividends for shareholders, and revealed plans to expand its business into Greece.
The overall income for the bank decreased by 7% to €767 million. A key reason was a €76 million reduction in net interest income, which shows that the period of rapidly rising interest rates is coming to an end. Yet, the bank’s results also highlighted several positive areas. New lending grew significantly by 31%, reaching €2.24 billion. This strong performance in lending, especially to international and corporate clients, helped balance the weaker interest income. Additionally, income from other services, like insurance, rose by 7% to €219 million.
The bank’s financial health is improving. The level of bad loans, known as Non-Performing Exposures, is now very low at just 1.2%. Because of this strength, the bank continues to share its profits generously with shareholders, maintaining a 70% dividend payout ratio. An interim dividend was already paid in October.
This show of confidence comes at a time when competition in Cyprus is increasing, following another bank's takeover of Hellenic Bank. In response, the Bank of Cyprus is not only working to strengthen its position at home but is also looking for opportunities abroad. The bank’s CEO, Panicos Nicolaou, stated that they expect to update their strategy and financial targets early in 2026. This update will formally outline the bank's ambitions for growth beyond Cyprus, signaling a new phase for the country’s largest lender.