Nicosia, Cyprus. The Bank of Cyprus held its annual general meeting on Friday, with shareholders reviewing strong 2025 financial performance, higher dividends and continued investment in digital banking amid geopolitical instability.
2025 financial performance and capital position
Group chief executive officer Panicos Nicolaou said 2025 was another strong year for the bank, citing €481 million in profitability and a return on tangible equity of 18.6 per cent, supported by a CET1 capital ratio of 21 per cent. He said the combination of profitability and capital strength positioned the Bank of Cyprus among the most highly capitalised banks in the euro area.
Dividends and shareholder returns
Nicolaou said the performance enabled the bank to raise its shareholder payout ratio to 70 per cent, at the top end of its distribution policy, resulting in a total dividend of €305 million, or 70 cents per share, from 2025 earnings. He said the bank had paid almost €550 million of cumulative distributions over the last two financial years and remained committed to delivering attractive and sustainable shareholder returns, subject to market conditions.
Business model and domestic economic backdrop
The chief executive attributed the bank’s performance to a diversified business model spanning banking, insurance and payments, and to what he described as a strong position in Cyprus’ growing economy. He said Cyprus continued to demonstrate resilience and growth despite external shocks.
Cyprus growth and public finances
Nicolaou said Cyprus recorded GDP growth of 3.8 per cent in 2025, above the euro area average of 1.5 per cent. He said growth was supported by tourism, technology, low unemployment and low inflation, while public finances strengthened with a budget surplus of 3.4 per cent of GDP and public debt declining to 55 per cent of GDP, below the euro area average.
What do you consider the most important factor behind the Bank of Cyprus’ 2025 performance?
