The Bank of Cyprus has shown strong ambition, even though its earnings for the first nine months of 2025 fell. The bank has actually increased its full-year profit goal and plans to give more money back to its shareholders. Cyprus's largest bank reported a 12% drop in profit after tax, which was €353 million. However, because of strong growth in lending and better quality assets, the bank's management is more confident about its future performance. This shows the bank's strength in a market that is changing quickly.
The situation for banks in Cyprus changed significantly this year after Eurobank bought its competitor, Hellenic Bank. This has created a new competitive environment for the Bank of Cyprus, forcing it to rethink its strategy. In this context, the bank's recent results are mixed. Its total income decreased by 7% to €767 million, mainly because the profit it makes from interest has become smaller. However, other areas of its business performed very well.
A key reason for this strength is a large increase in new lending. The bank gave out €2.24 billion in new loans during this period, which is 31% more than the previous year. The Chief Executive, Panicos Nicolaou, said this growth came from "international and corporate demand." This shows the bank is successfully doing more business outside of Cyprus. At the same time, the amount of customer deposits grew by 7% to €21.5 billion, which improves the bank's financial stability. Importantly, the bank also continued to solve old problems by reducing its bad loans to just 1.2% of all loans.
These positive steps have allowed the bank to take confident action. It has already paid a higher dividend to shareholders and confirmed it will give them 70% of its profits. Furthermore, the bank raised its full-year profit target. This confidence is also seen in the stock market, where the bank's share price has increased greatly over the past year.
Looking ahead, the bank is at an important point. Its management will present a new strategy in early 2026. This plan must find a way to keep profits strong while interest income is lower. To do this, the bank will likely depend more on fees and insurance services for future growth. For everyone involved, the bank's next steps will be a crucial test of its ability to succeed in Cyprus's new financial landscape.