The Bank of Cyprus (BoC) has reported a profit after tax of €481 million for the financial year 2025, alongside a remarkable surge in lending activity. The bank’s record new lending reached €3 billion, reflecting a 23 per cent increase compared to the previous year.
CEO Panicos Nicolaou attributed this success to the bank’s strong financial and operational performance, emphasising cost efficiency, robust liquidity, and healthy asset quality. “2025 was another strong year for Bank of Cyprus,” Nicolaou stated, highlighting how the bank exceeded its target of approximately 4 per cent loan growth.
Gross performing loans climbed to €10.9 billion, representing an 8 per cent year-on-year rise, while the predominantly retail deposit base also grew to €22.2 billion, indicating a similar increase. Nicolaou noted that the growth was primarily driven by corporate and international demand, showcasing the bank’s ability to respond to market needs.
The fourth quarter alone contributed €128 million to the annual profit, with a return on tangible equity of 18.6 per cent and basic earnings per share reaching €1.10. The bank maintained a low cost to income ratio of 37 per cent, a testament to its commitment to cost discipline.
In terms of liquidity, the Bank of Cyprus reported a coverage ratio of 321 per cent, supported by surplus liquidity of €9.2 billion. The non-performing exposures ratio has been reduced to a commendable 1.2 per cent, and the cost of risk remained low at 33 basis points. The bank’s CET1 ratio stood at 21.0 per cent, alongside a total capital ratio of 25.9 per cent.
The total distribution to shareholders for the year amounted to €305 million, reflecting a 70 per cent payout ratio. Nicolaou announced a proposed final dividend of €0.50 per ordinary share, aligning with the bank’s distribution policy and marking a significant increase in both payout ratio and total quantum compared to the previous year. Over the last two financial years, the Bank of Cyprus has delivered nearly €550 million in cumulative distributions, reinforcing its dedication to sustainable shareholder value.
With Cyprus’s GDP projected to grow by 3.1 per cent in 2026, outpacing the Eurozone average, Nicolaou expressed optimism about the bank’s future prospects. He mentioned an upcoming investor update scheduled for March 3, 2026, where the bank will outline its strategic priorities and new financial targets.
Addressing questions about the digital euro, Nicolaou revealed that the bank has established a working group to prepare for the potential implementation. He believes it will happen as Europe seeks alternative payment methods.
When asked about the acquisition of non-performing loans from credit-acquiring companies, Nicolaou responded with caution, highlighting the need for careful evaluation of borrower characteristics. He expressed concern over discussions surrounding taxing bank profits, pointing out that increased profits lead to higher corporate tax contributions.
He reminded attendees of the historical context, noting that banks had faced significant losses from 2012 to 2022 and questioned whether taxing dividends now constitutes fair treatment. Nicolaou also highlighted the potential impact of political risk on investment decisions in Cyprus, noting its significance for the bank’s operations.
In addition to financial achievements, BoC announced changes to its board committees, effective from March 1, 2026. Irene Psaltis will chair the audit committee, while Adrian Lewis will lead the human resources and remuneration committee. The board also appointed George Syrichas as vice chairman.
