Bank Of Cyprus (BOCHGR) Q3 2025 earnings summary

Executive summary

• Profit after tax for 9M2025 reached €353 million, with ROTE at 18.4% and CET1 ratio above 20%, maintaining strong profitability and a resilient balance sheet.

• New lending totaled €2.2 billion, up 31% year-over-year, mainly from international and corporate demand, with gross performing loans up 6% since December 2024.

• Paid first interim dividend in 15 years (€0.20 per share) in October 2025; total cash dividends for 2025 at €0.68 per share, and a €30 million share buyback completed.

• Upgraded 2025 ROTE target to high teens, reaffirmed a 70% payout ratio target, and strong capital generation supports attractive shareholder returns.

• Cost to income ratio remained low at 35% for 9M2025, reflecting efficiency focus despite higher staff costs and special levies.

Financial highlights

• Net interest income for 9M2025 was €548 million, down 12% year-over-year, with Q3 at €180 million; non-interest income rose 7% to €219 million, driven by insurance and fee growth.

• Total income declined 7% to €767 million, while operating profit fell 13% to €466 million.

• EPS for 9M2025 was €0.81, and tangible book value per share grew 6% year-on-year to €5.86.

• Cost to income ratio at 35% for the nine months, up 3 percentage points year-over-year.

• NPE ratio improved to 1.2% and cost of risk at 35 basis points, with strong asset quality and limited NPE inflows.

Outlook and guidance

• 2025 ROTE target upgraded to high teens, with expectations to exceed 20% on a 15% CET1 ratio; net interest income for 2025 expected at approximately €720 million.

• Loan growth for 2025 expected to materially exceed the initial 4% target, likely surpassing 6%, mainly driven by international lending.

• Cost to income ratio (excluding special levies) expected to remain below 40% for 2025, and cost of risk projected to stay under 40 basis points.

• More detailed strategy and financial targets to be provided in Q1 2026.

• Organic capital generation target of c.300 bps for FY2025, with upside potential from bolt-on acquisitions.