The Cypriot economy is showing resilience amid geopolitical uncertainty, a trend that is also reflected in the Bank of Cyprus results for the first quarter of 2026. The bank recorded net profits approaching €121 million, while its loan portfolio increased by approximately two per cent.
In brief, the Bank of Cyprus results for the first quarter of 2026 are as follows. Profit after tax amounted to €121 million. Return on Tangible Equity stood at 18 per cent for the quarter ended 31 March 2026. Basic earnings per share reached €0.28. The cost‑to‑income ratio remained low at 37 per cent. New lending totalled €829 million, up nine per cent on a quarterly basis, confirming the commitment to supporting customers and the Cypriot economy. Performing loans reached €11.1 billion, up two per cent quarter on quarter. The ratio of non‑performing loans to total loans declined to 1.1 per cent.
According to the bank’s chief executive officer, Panicos Nicolaou, the Cypriot economy continues to grow at satisfactory rates and compares favourably with other eurozone economies. As he noted, steady loan growth and sustained profitability indicate that businesses and households continue to invest and remain active.
At the same time, Mr Nicolaou sent a clear message that the gains of economic stability should not be put at risk. Asked to comment on the possible outcome of the parliamentary elections, he said he would not comment on voters’ choices. However, he underlined that the country’s credibility is a fundamental factor for sustaining growth and attracting foreign investment. Credibility, he said, must be maintained regardless of the election result.
With regard to tourism, the head of the Bank of Cyprus expressed cautious optimism. While acknowledging that a slowdown compared with the exceptional performances of 2023 and 2024 cannot be ruled out, he stressed that the sector has significant liquidity buffers. This, he explained, acts as a cushion to absorb shocks, maintaining its financial resilience.
Total lending by the Bank of Cyprus to the sector amounts to €1.13 billion, while deposits stand at €400 million. The bank has not received requests for loan restructurings.
The dividend
Reference was also made to the bank’s dividend policy. For the 2025 financial year, the board of directors intends to propose at the general meeting this coming Friday the distribution of a dividend of €0.50 per share. In total, including the interim dividend paid in October 2025 of €0.20, the amount to be distributed to shareholders will reach €305 million, confirming the commitment to strong returns. The distribution corresponds to 70 per cent of profits and could rise to as much as 90 per cent in the coming years.
