BOCY profits drop on lower interest income

Bank of Cyprus saw its profits drop by nearly 6% to €481 mln in 2025, from €508 mln the year before, due to a whopping €160 mln fall in interest income.

However, the bank’s CEO seems confident due to increased loans and deposits last year, as well as a healthy return on tangible equity (ROTE) rate of 18.6%.

This was reflected in the basic earnings per share of 109.6c, slipping from 114c in 2024, with the total dividend payout for 2025 at 70c a share, a 20c interim dividend paid in October and a further 50c to be approved by the shareholders’ AGM in May.

“Net interest income has demonstrated resilience on the back of strong loan and deposit growth, despite the lower interest rate environment,” said chief executive Panicos Nicolaou.

“Gross performing loans and our predominantly retail deposits both increased by 8% yoy to €10.9 bln and €22.2 bln, respectively. We exceeded our target of 4% loan growth for 2025 as healthy domestic credit activity was complemented by the continued growth in our international loan book. We achieved record new lending of €3.0 bln, up 23% yoy, driven mainly by corporate and international demand.”

The bank’s CEO added that, “our performance was further supported by cost efficiency, robust liquidity and healthy asset quality.”

However, one of the obstacles in improving cost efficiencies is the 10% pay increase awarded to the group’s 2,850 staff, rising to €225 mln, while the credit card clearing subsidiary, JCC Payments, and the two insurance companies, Eurolife and General Insurance Co., are the leading non-interest income earners.

JCC’s contribution rose 5% to €30 mln, while Eurolife and General Insurance jointly added €59 mln to the group’s profits, up from €46 mln the previous year.