Bank Of Cyprus (BOCHGR) H2 2025 earnings summary

Executive summary

• Achieved record new lending of €3.0bn in FY2025, up 23% year-over-year, with gross performing loans at €10.9bn, up 8% year-over-year.

• Profit after tax reached €481mn, with a basic EPS of €1.10 and a cost-to-income ratio of 37%.

• Maintained a robust capital position with a CET1 ratio of 21.0% and a total capital ratio of 25.9%.

• Distributed €305mn in cash dividends, representing a 70% payout ratio, and delivered a dividend yield of 9%.

• NPE ratio reduced to 1.2%, with a low cost of risk at 33bps and surplus liquidity of €9.2bn.

Financial highlights

• Net interest income for FY2025 was €731mn, down 11% year-over-year due to lower rates, but up 2% quarter-on-quarter in Q4 on volume growth.

• Non-interest income rose 14% year-over-year to €309mn, with recurring non-NII at €250mn, up 4%.

• Total income for FY2025 was €1,040mn, down 5% year-over-year.

• Operating expenses increased 5% year-over-year, mainly due to a voluntary staff exit plan.

• Profit after tax for FY2025 was €481mn, down 5% year-over-year.

Outlook and guidance

• ROTE target for 2026-2028 set at mid-teens, with a payout ratio policy of 70% and potential top-up dividends up to 100%.

• Net interest income expected to stabilise in 2026 and grow at a 3% CAGR by 2028.

• Loan growth projected at 3% CAGR domestically and selective international expansion to €2.0bn by 2028.

• Cost-to-income ratio expected to remain around 40% for 2026-2028, with continued IT investments.

• Asset quality to remain robust, with NPE ratio sustained at current levels and cost of risk at the lower end of 40-50bps.