The Bank of Cyprus has shown it remains strong, even though its profits for the first nine months of 2025 have fallen. The bank, which is the largest in Cyprus, is managing a difficult period for interest income by focusing on growing its loans and improving how it operates. It is also preparing for important strategic changes and possible international growth next year.
Between January and September 2025, the bank’s profit after tax was €353 million. This is 12% lower than the same period in 2024. The main reason for this drop was a €76 million decrease in net interest income, a problem affecting many banks as interest rates stop rising. Overall income also fell by 7% to €767 million. However, the bank’s basic business health is very good. There was a large increase in new lending, especially to businesses and international clients, and customer deposits grew strongly. This shows the bank’s model is solid and can adapt.
The bank’s strategy to handle lower interest income is working. It gave out €2.24 billion in new loans, which is 31% more than the previous year. This has increased its total good loans to €10.71 billion. At the same time, the quality of its loans has improved. The percentage of bad loans has fallen to just 1.2%, from 2.0% at the end of last year. CEO Panicos Nicolaou said, "We granted €2.24 billion of new loans, 31% higher than the prior year, driven mainly by international and corporate demand."
To show confidence, the bank’s management has increased its full-year profit target. It now aims for a 20% Return on Tangible Equity. It also plans to pay 70% of its profits to shareholders as dividends, with part of this already paid in October. The bank’s share price has risen a lot in the past year, showing investors support its plans.
The competitive situation in Cyprus is changing because Eurobank is buying Hellenic Bank. In response, the Bank of Cyprus will present an updated long-term strategy in early 2026. Experts believe a planned expansion into Greece could be a key part of this. The bank is getting ready not just to keep its leading position at home, but to grow carefully in other countries.