Significant progress has been made in the digitalisation of Cypriot banks in recent years. The use of advanced mobile banking applications has also contributed to a reduction in income from fees and commissions.
At the same time, the decline in income from fees and commissions as a percentage of total operating income has been influenced by increased competition from fintech companies and the adoption of European regulations, such as instant payments.
Data presented by “P” show that although bank revenues from fees and commissions remain significant, they have fallen compared with previous years, which were accompanied by citizen criticism for excessive charges. Public discontent continues due to the messages sent to mobile phones; however, banking sources told “P” that these are regulatory obligations and do not incur extra charges.
Major banks, including Bank of Cyprus and Eurobank (formerly Hellenic Bank), have invested heavily in digital transformation, and the operational model of Cypriot banks has shifted from physical branches to online platforms and ATMs.
Nine out of ten transactions that were previously conducted at the counter are now completed electronically or through ATMs. These transactions include cash and cheque deposits, cash withdrawals, cheque encashments, transfers, payments, purchases, and utility bill payments.
To meet the needs of younger customers for efficient, immediate, and secure service, banks have also introduced differentiated and slightly lower fees in plans targeted at younger users.
According to data from the Central Bank, fees and commissions accounted for 15% of total operating income in the first half of 2025, exceeding the percentages recorded in 2023 and 2024 but still significantly below the levels of 2021 and 2022.
In real numbers, bank revenues from fees and commissions reached €181 million in the first six months of 2025. In 2024 and 2023, they were €360 million, while in 2022 they had reached €364 million, representing 25.7% of total operating income.
Reduction in 2024
Net income from fees and commissions at Bank of Cyprus for the year ending 31 December 2024 decreased by 2% year on year to €177 million, compared with €181 million in the previous year, mainly due to lower fees from transaction-related services.
For the nine months ending 30 September 2025, net income from fees and commissions at Bank of Cyprus reached €133 million, compared with €131 million for the same period in 2024, an increase of 2% year on year. The annual increase is mainly due to higher fees from non-transaction services. Net income from fees and commissions for the third quarter of 2025 was €45 million, up 2% on a quarterly basis, mainly due to higher transaction service fees.
Eurobank’s net income from fees and commissions fell by 4% in 2024 to €69.9 million, compared with €72.8 million for the 2023 financial year. The decline was mainly due to lower banking fees and commissions, particularly from loans and credit facilities. Commission income at Eurobank reached €124 million in the first nine months of 2025.
It should be noted that, as with bank interest rates, there is no standardised level of fees; charges vary depending on the account type and the pricing policy of each bank.
Regarding net interest income, banks reported €891.6 million in the first half of 2025, down from €1 billion in the same period last year. In 2024, net interest income reached €2 billion, up from €1.9 billion in 2023 and €976.1 million in 2022.