Nicosia, Cyprus. Bank of Cyprus has been named the best bank in Cyprus in the World’s Best Banks Awards 2026 by Global Finance, which cited the lender’s strong performance and strategic initiatives during 2025. The recognition comes as Western Europe’s banking sector faces lower interest rates and increased pressure on profitability.
Sector backdrop
Global Finance said European banks have shown resilience despite the European Central Bank’s easing cycle, with many institutions adapting to a more challenging environment. In its review of Western Europe’s banking sector, the publication said the region’s leading banks remained well capitalised, continued their digital evolution and pursued acquisitions to strengthen their business models.
Bank of Cyprus performance
Against this backdrop, Global Finance highlighted Bank of Cyprus’ acquisition of Ethniki Insurance Cyprus Ltd as an example of the growing importance of mergers and acquisitions in securing complementary sources of income and enhancing long-term competitiveness.
The publication also pointed to the continued importance of technology, cybersecurity and operational resilience across the sector amid rising geopolitical and cyber risks.
Global Finance said Bank of Cyprus’ recognition reflected the lender’s achievements during 2025, including a 25 per cent year-on-year increase in shareholder distribution, the expansion of its insurance activities through the acquisition of Ethniki Insurance Cyprus Ltd, and the launch of Cyprus’ first digital housing loan, which strengthened its digital offering.
Diversification focus
The publication’s article on the best banks in Western Europe said banks across the region have increasingly focused on diversification, as declining net interest income has become a challenge following years of elevated interest rates.
Executive comment
Commenting on the award, Bank of Cyprus chief executive Panicos Nicolaou said the distinction acknowledged the group’s recent performance and commitment to customers.
“We are proud to have been recognised again as the Best Bank in Cyprus by Global Finance,” Nicolaou said.