Bank of Cyprus has reported its nine-month results. The key figures are as follows:
- Performing loan book of €11.6bn, up 7% since the start of the year and 9% year on year
- Deposit base, predominantly retail, of €23.5bn, up 6% since the start of the year and 9% year on year
- Profit after tax of €383m, including €131m in the third quarter of 2026, unchanged quarter on quarter
- Return on Tangible Equity (ROTE) of 18.9% for the nine months ended 30 September 2026
- Basic earnings per share of €0.88, up 9% year on year
- Cost-to-income ratio of 36%
- Loan credit loss charge amounted to a net release of 14 basis points, due to specific customer reversals
- Non-performing loans (NPLs) as a share of loans stood at 1.0%
- Common Equity Tier 1 (CET1) ratio of 20.6%3 and total capital adequacy ratio of 25.2%
- Organic capital generation of 341 basis points
- Interim dividend payment of €0.24 per ordinary share in October 2026
Smaller acquisitions
Completed the acquisition of a portfolio of performing loans worth about €130m and deposits of about €440m from Cyprus Development Bank Public Company Limited (‘CDB’) in October 2026
Panicos Nicolaou: Strong capital generation
“We continue to deliver strong financial and operational performance, as reflected in our results for the nine months ended 30 September 2026. Total profit after tax rose 9% year on year to €383m, generating a Return on Tangible Equity (ROTE) of 18.9% on a high capital base.
We are continuing to execute our strategy successfully, recording strong growth in loans and deposits while maintaining disciplined cost management and prudent lending practices.
Our performing loan book stood at €11.6bn, up 9% year on year and 7% since the start of the year, supported mainly by domestic demand for lending. Our deposit base, most of which is retail, rose 9% year on year and 6% since the start of the year to €23.5bn at 30 September 2026.
The quality of our loan book remained strong, with NPLs at 1.0% of loans and the loan credit loss charge a net release.
Our business model continues to generate strong organic capital of 341 basis points for the nine months ended 30 September 2026, putting us on track to exceed our 2026 target of organic capital generation of between 350 and 400 basis points.
With a provision for ordinary dividend distributions of 70% (payout ratio), at the upper end of our Distribution Policy, the Common Equity Tier 1 (CET1) and total capital adequacy ratios stood at 20.6% and 25.2%, respectively. Tangible book value per share rose to €6.21, up 11% since the start of the year, following payment of an interim dividend of €0.24 in October 2026.
As part of our strategy to expand our balance sheet through organic and inorganic growth, in October 2026 we completed the acquisition of a portfolio of performing loans worth about €130m and deposits of about €440m from Cyprus Development Bank Public Company Limited, with the transaction price close to par.
The Cypriot economy remains strong and is growing despite continued geopolitical uncertainty. According to official forecasts, the expected growth rate for 2026 has been revised up to about 3%1, from about 2.5%, confirming the economy’s resilience.
The country’s growth rate is expected to continue to outpace the eurozone average. Low unemployment, the rapid recovery of tourism to 2025 levels and a strong fiscal position, reflected in a decline in public debt as a share of GDP, have all helped drive strong economic growth.
In view of our strong performance, we are raising our target for Return on Tangible Equity for 2026 to the high teens. For 2026, we remain committed to our target for a total ordinary payout ratio of 70%, at the upper end of our Distribution Policy, and an additional dividend of up to 20% of 2026 profits.
We remain committed to supporting our customers and the wider economy, while keeping our primary focus on delivering strong returns to our shareholders.”
* See the accompanying materials column for details.