Bank of Cyprus full-year net profit falls 5% year-on-year after lower rates (updated)

Bank of Cyprus Holdings

18/02/2026 07:48

Adds details in paragraphs 3-5, dividend in paragraph 6, forecast in paragraph 7

Feb 18 (Reuters) - Bank of Cyprus' BOCH.CY full-year net profit fell by 5%, it said on Wednesday, after lower rates reduced net interest income, though the island's largest lender reported record new lending and strengthened its capital position.

The bank posted profit after tax of 480.6 million euros  ($569.17 million) for 2025, down from 508.2 million a year earlier.

Net interest income fell 11% year-on-year to 730.5 million euros, reflecting the impact of lower reference rates, despite growth in deposits and lending volumes.

The bank's record new lending of 3 billion euros, a 23% increase from the previous year, was driven mainly by corporate and international demand. It said gross performing loans rose 8% since the beginning of 2025 to 10.87 billion euros, while customer deposits increased by the same percentage, reaching 22.19 billion euros.

As the bank further strengthened its balance sheet, its Common Equity Tier 1 ratio rose to 21.0% at end-2025 from 19.2% a year earlier, supported by 436 basis points of organic capital generation.

The board plans to propose a final cash dividend of 0.50 euros per share, bringing the total dividend for 2025 to 0.70 euros per share, representing a 70% payout ratio, at the top end of its distribution policy.

The bank said it would provide an update on its strategic priorities and financial targets during its investor event on March 3.

($1 = 0.8444 euros)

 (Reporting by Antonis Pothitos; Editing by Elaine Hardcastle and Barbara Lewis)

 ((antonis.pothitos@thomsonreuters.com; +48 58 769 65 78;))