Bank of Cyprus raises 2025 target on loan growth (updated)

Bank of Cyprus Holdings

11/11/2025 08:10

Adds details on guidance in paragraphs 2-3

Nov 11 (Reuters) - Bank of Cyprus BOCH.CY, the island's largest lender, reported a 12% drop in its nine-month net profit on Tuesday, citing lower interest income, but upgraded its full-year return on tangible equity (ROTE) target as loan growth and fee income offset pressure from falling rates.

The bank raised its 2025 ROTE to the high-teens from mid-teens. Net interest income guidance was lifted to about 720 million euros ($840 million) from under 700 million, and the bank said it expects its cost of risk to remain capped at 40 basis points.

Bank of Cyprus reaffirmed its 70% payout ratio for the year, after paying an interim dividend of 0.20 euros per share in October, bringing total cash dividends distributed in 2025 to 0.68 euros per share.

It also posted a net profit of 353 million euros for the nine months to September, down from 401 million a year earlier.

New lending accelerated 31% year-on-year to 2.24 billion euros in the first nine months, driven mainly by international and corporate demand, lifting gross performing loans 6% year-to-date, while customer deposits rose 7% to 21.5 billion euros.

Non-performing exposures fell to 1.2% of gross loans at end-September, down from 2.0% at the end of 2024, with a coverage ratio at 124%. The bank expects to complete a 35-million-euro non-performing loan portfolio sale in the fourth quarter.

"We continue to operate in a supportive macroeconomic environment that is resilient and growing," Chief Executive Panicos Nicolaou said in a statement, adding that the bank plans to update its strategy and financial targets in the first quarter of 2026.

According to the latest projections from the Ministry of Finance, Cyprus' economy is forecast to grow 3.2% this year,  surpassing the euro zone average.

($1 = 0.8575 euros)

 (Reporting by Antonis Pothitos; Editing by Andrew Heavens and Joe Bavier)

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