In addition, according to the bank’s financial results, basic earnings per share for the quarter stood at €0.27. Return on Tangible Equity (ROTE) stood at at 18.3 per cent, exceeding the bank’s full-year target.

“The Bank of Cyprus delivered another strong quarterly performance in the first 3 months of 2025,” said group chief executive Panicos Nicolaou. “Our key performance metric, Return on Tangible Equity, remained strong at 18.3 per cent, above our full year target for mid-teens returns – despite the impact of falling interest rates,” he added. “Our business model,” Nicolaou continued, “remains efficient with a cost to income ratio of 34 per cent whilst credit quality remained robust with NPEs remaining below 2 per cent and cost of risk under 40 bps.”

The group’s gross performing loans totalled €10.45 billion, a 3 per cent increase compared to December 2024. New lending for the quarter reached a record €842 million, reflecting a 16 per cent quarter-on-quarter increase.

“Our performing loan book grew by 3 per cent from December 2024 to €10.45 billion, supported by strong new lending, which was up 16 per cent on the prior quarter,” Nicolaou said. “Our international loan book is now approximately 10 per cent of our performing loan portfolio, up 34 per cent year on year,” he added.

Furthermore, the bank’s retail-funded deposit base rose slightly to €20.7 billion, up 1 per cent when compared to December 2024. Non-performing exposures (NPEs) were reduced to 1.8 per cent, while the cost of risk remained low at 39 basis points. The Common Equity Tier 1 (CET1) ratio improved to 19.9 per cent and the Total Capital ratio reached 25.0 per cent, both figures inclusive of first quarter profits and net of distribution accrual at a 70 per cent payout ratio.

“Our balance sheet continues to benefit from a robust capital position and high liquidity,” said Nicolaou. “Strong organic capital generation of approximately 110 bps combined with a positive impact of circa 100 bps from CRR III initial implementation in January 2025, increased our CET 1 ratio and Total capital ratio to 19.9 per cent and 25 per cent respectively, including 1Q2025 profits, net of distribution accrual at 70 per cent payout ratio,” he added.

The bank also highlighted recent strategic initiatives aimed at strengthening its diversified business model. In April 2025, the group signed a binding agreement to acquire 100 per cent of Ethniki Insurance Cyprus Ltd for €29.5 million. “This in-fill acquisition further solidifies our leading positions in the Life and Non-Life insurance sectors in Cyprus and will bolster the contribution of Non-NII to the Group’s revenues,” stated Nicolaou.

The bank also noted that the Cypriot economy continued to show strength, growing by 3.4 per cent in 2024, which was significantly above the Eurozone average. “The Cypriot economy continues to demonstrate resilience and good growth, despite increased global economic uncertainty,” the CEO said. “The economy expanded by 3.4 per cent in 2024, significantly outperforming the Eurozone average, with this trend expected to continue,” he added. He also said that “whilst Cyprus’ direct exposure to higher US trade tariffs is limited, we remain alert to risks that Cyprus might experience indirect effects, via the European economy”.

The bank also reaffirmed its confidence in the outlook, bolstered by strong fundamentals and proactive management actions taken in recent years.

“The decisive management actions taken in recent years ensure that Bank of Cyprus faces the current heightened global economic uncertainty from a position of strength,” Nicolaou said. For 2024, the bank will pay a cash dividend of €211 million, scheduled for June 25, 2025, representing a 50 per cent payout ratio. Additionally, a €30 million share buyback programme was also launched in February 2025. From 2025 onward, the group’s distribution policy targets a 50 to 70 per cent payout ratio, and the introduction of interim dividends is under consideration.

“Our strong performance in the first quarter provides us with confidence about our ability to achieve our 2025 targets,” Nicolaou stated. “We remain fully focused on supporting our customers and the Cypriot economy, while delivering attractive returns to our shareholders,” he concluded.

Source: Cyprus Mail