A temporary agreement has been reached to settle a major disagreement from Cyprus's 2013 financial crisis. The deal will provide compensation to bank employees who lost money during the country's difficult "bail-in" period. This important development was announced after a high-level meeting at the presidential palace, which included government officials, bank leaders, and trade union representatives. This social and political progress happens at the same time as the Bank of Cyprus reveals its financial results for the first nine months of 2025, showing a mixed picture of lower profits but strong business growth.
The problem began with a 2017 government decision. At that time, the state paid compensation to most depositors who lost savings when their money was forcibly changed into bank shares to save the country's financial system. However, this decision left out about 700 bank employees. These workers were blamed for the banking sector's failure and were denied the financial help that others received, an action many called unfair. The new provisional agreement aims to correct this injustice and end ten years of bitter feelings.
According to sources close to the talks, the compensation plan is expected to cost around one hundred million euros. The cost will be shared by the government, the Bank of Cyprus, and the Etyk trade union, which has strongly supported the affected employees. A government spokesman described the agreement as having a "clear political and social footprint," showing it is an important act of fairness. While the deal is not yet final, the fact that it was negotiated at the highest level of government shows a serious commitment to making it official.
At the same time, the Bank of Cyprus reported its financial performance up to September 30, 2025. The bank announced a net profit of €353 million, which is 12% lower than the €401 million it made in the same period the year before. This drop was mainly due to a 7% decrease in total income. However, the bank also showed strong underlying performance. New lending grew by an impressive 31% to €2.24 billion, driven by high demand from international and business clients. Customer deposits also increased by 7%, showing that public trust remains high.
In a show of confidence, the bank's board approved an interim dividend of 20 cents per share and set a goal to pay out 70% of its profits to shareholders. The bank's share price has also risen significantly over the past year. The Chief Executive confirmed the positive direction, highlighting the growth in lending and deposits. The bank has also increased its full-year profit target.
Together, these events show a country and its main bank dealing with a difficult history. The compensation agreement helps to heal a painful past, while the bank's strong results point towards a more stable and profitable future.