Bank of Cyprus reported net profit of €252 million for the first six months of 2026, up from €235 million in the corresponding period of 2025, while announcing an interim dividend of €0.24 per ordinary share.
According to results released on Monday, profit for the second quarter alone reached €131 million, contributing to a 7% year-on-year increase in first-half earnings.
The bank also announced an interim cash dividend of approximately €105 million, equivalent to €0.24 per ordinary share, representing a 20% increase year-on-year. The dividend, due to be paid in October 2026, corresponds to a 44% payout ratio of profitability for the six months ended 30 June 2026.
Return on Tangible Equity (ROTE) reached 18.8%, exceeding the bank's target for 2026 and improving on 18.4% recorded a year earlier.
Revenue edges higher
Total revenue rose 1% year-on-year to €515 million.
The increase was driven by non-interest income, while interest income remained broadly stable.
Non-interest income increased 3% to €146 million, compared with €141 million in the first half of 2025.
Net interest income reached €369 million, compared with €368 million a year earlier.
Meanwhile, the bank's net interest margin declined to 2.83% from 3.05%, a reduction of 22 basis points year-on-year.
Insurance business posts strong growth
Net insurance result rose to €33 million, compared with €24 million in the first half of 2025, representing an increase of 35%.
The bank attributed the improvement mainly to favourable claims experience, lower loss components in life insurance policies, the acquisition of Ethniki Insurance Cyprus Ltd, completed in July 2025, and growth in new business.
Expenses increase 6%
Total expenses increased 6% to €209 million, compared with €197 million in the corresponding period last year.
Of the total:
- €110 million (52%) related to staff costs.
- €76 million (37%) related to other operating expenses.
- €23 million (11%) related to the special levy on deposits and other fees and contributions.
The bank's cost-to-income ratio stood at 36%.
Asset quality improves
Non-performing exposures (NPEs) declined to 1.0% of gross loans as of 30 June 2026, down from 1.2% at the end of 2025.
Loan credit losses recorded a net credit of 12 basis points, reflecting specific client-related reversals.
Loans and deposits continue to grow
The bank's loan portfolio increased 8% year-on-year and 5% since the start of the year, supported by demand from both the domestic market and the international business sector.
Deposits, predominantly retail in nature, rose 9% year-on-year and 3% since the beginning of the year to €22.8 billion at the end of June.
New lending during the first half of 2026 totalled €1.6 billion, up 2% from a year earlier, primarily driven by demand for international business loans and residential mortgages.
CEO highlights strong performance
Chief executive Panicos Nicolaou said the results reflected the bank's diversified operating model and sustained performance.
"We delivered strong financial results in the first half of 2026, reflecting our diversified and efficient business model and our continued strong performance," he said.
Mr Nicolaou added that the bank remains committed to achieving a total ordinary payout ratio of 70% for 2026, at the upper end of its distribution policy, along with an additional dividend of up to 20% of 2026 profitability.
