Bank of Cyprus (BoC) has capped a “landmark year” with a net profit of €481 million for 2025, fueled by a historic surge in new lending and a robust domestic economy. At a press conference held on Wednesday, February 18, 2026, CEO Panicos Nicolaou unveiled the preliminary results, highlighting a final quarter that contributed €128 million to the bottom line.
The bank’s performance has paved the way for a massive windfall for investors, with the board proposing a total distribution of €305 million—hitting the maximum 70% payout ratio allowed under its current policy.
Lending Records and Market Dominance
Despite a cooling interest rate environment globally, BoC saw its new lending jump by 23% year-on-year, reaching a record-breaking €3 billion. This aggressive expansion helped the bank’s total performing loan book grow by 8%, finishing the year at €10.9 billion.
2025 Financial Snapshot:
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Total Income: €1.04 billion (Slightly down from 2024 due to lower interest margins).
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Non-Interest Income: €309 million (Up 14%, driven by fees and insurance results).
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Retail Deposits: Climbed to €22.2 billion, a steady 8% increase.
Efficiency and Asset Quality
Nicolaou emphasized that the bank is now operating as one of the leanest institutions in the region. The cost-to-income ratio remained exceptionally low at 37%, while the bank’s efforts to clean up legacy debt have pushed the Non-Performing Loan (NPL) ratio down to a mere 1.2%.
“Our asset quality is now significantly better than the European average,” Nicolaou stated, noting that the bank’s Return on Tangible Equity (ROTE) reached a healthy 18.6%.
Capital Strength & Shareholder Rewards
The bank’s capital buffers have reached “fortress” levels. The Common Equity Tier 1 (CET1) ratio rose to 21%, while the total capital ratio hit 25.9%. This financial strength allowed the bank to propose a final dividend of €0.50 per share, bringing the total annual payout to €0.70 per share.
| Key Metric | FY 2025 Result | Status vs. Target |
| New Lending | €3.0 Billion | 📈 Record High |
| NPL Ratio | 1.2% | 📉 Record Low |
| Dividend Payout | 70% | 🥇 Top Tier |
| CET1 Ratio | 21.0% | 💪 Robust |
Strategic Outlook for 2026
Looking ahead, Nicolaou pointed to the resilience of the Cypriot economy, which is expected to grow by 3.1% in 2026—more than double the projected average for the Eurozone. With a highly liquid balance sheet and surplus liquidity of €9.2 billion, the bank plans to continue its focus on digital innovation and supporting the island’s burgeoning tech and corporate sectors.
Source: Stockwatch.com.cy