Euroxx raises Bank of Cyprus target price to €13 after first-half results

Nicosia, Cyprus. Euroxx Research has raised its earnings forecasts for Bank of Cyprus for 2026-2028 and increased its target price for the lender’s shares to €13 from €11.50 after stronger-than-expected first-half results. The brokerage said it expects the bank’s dividend yield to reach 9.2 per cent in 2026.

First-half performance

Bank of Cyprus reported profit after tax of €252 million for the first half of 2026, up 7 per cent year on year, while second-quarter profit reached €131 million.

The bank announced a 20 per cent increase in its interim dividend to €0.24 per ordinary share. The payment is equivalent to about €105 million and represents a 44 per cent payout ratio on first-half earnings.

“We delivered excellent financial results in the first half of 2026, reflecting our diversified and efficient business model and continued strong performance,” group chief executive Panicos Nicolaou said.

Profitability and costs

The lender’s return on tangible equity reached 18.8 per cent in the first half, above its full-year target in the mid-teens. Basic earnings per share stood at €0.58.

Its cost-to-income ratio remained at 36 per cent, which the bank said reflected continued cost discipline.

“Cost management remained disciplined, evidenced by a cost to income ratio of 36 per cent,” Nicolaou said.

Revised forecasts

Euroxx said Bank of Cyprus shares remained an attractive investment option, citing their defensive characteristics, strong capital position and high dividend yield.

The brokerage increased its net profit forecasts by around 10 per cent across 2026-2028, raising its 2026 forecast by 14 per cent, its 2027 forecast by 8 per cent and its 2028 forecast by 7 per cent.