Cyprus’ banking sector recorded a drop in profitability in the first quarter of 2026, with profits falling to €202 million from €264 million in the same period last year, according to figures released by the Central Bank of Cyprus.
The €62 million decline, equal to 23.6%, was mainly attributed to lower net interest income and losses from foreign exchange differences.
Despite the fall in profits, the sector’s total assets increased slightly during the first quarter. They rose by €274 million, or 0.4%, reaching €70.2 billion compared with €70 billion at the end of December 2025.
The increase was mainly driven by growth in loans and advances, as well as debt securities.
The Common Equity Tier 1 ratio, a key measure of banks’ capital strength, fell by 0.7 percentage points to 25.1% at the end of March 2026, compared with 25.8% at the end of December 2025.
According to the Central Bank, the decline was mainly due to an increase in the total risk exposure amount, which offset the rise in Common Equity Tier 1 capital.
