Nicosia, Cyprus. The Bank of Cyprus on Tuesday outlined updated financial targets and a capital allocation framework at an investor presentation. GlobalWealth Group PLC also said the bank agreed to invest €6 million in Wealthyhood Ltd.
Investor update and priorities
Bank of Cyprus Holdings Public Limited Company said that during its Investor Update presentation on Tuesday, March 3, it would present an update on the group’s outlook, financial targets and capital allocation framework.
The bank said the updated guidance reflects strengthened operating performance, disciplined balance sheet management and positive momentum across core business lines, and that it reinforces the group’s capacity to generate sustainably high returns while supporting elevated distribution levels.
It said the group’s key priorities are to continue generating sustainable and resilient profitability and to deliver attractive shareholder returns.
Updated financial targets for 2026-2028
Based on its priorities, the group updated its 2026 to 2028 financial targets and said it expects to deliver a mid teens reported ROTE, equivalent to a ROTE of over 20 per cent based on a 15 per cent CET1 ratio basis.
The bank said this level of profitability supports strong organic capital generation of 350 to 400 basis points per annum over 2026 to 2028.
Net interest income expectations and loan growth assumptions
Net interest income is expected to stabilise in 2026 as interest rates have normalised, with the European Central Bank deposit facility rate expected to average 2 per cent for 2026, and to grow by an average of around 3 per cent per annum for 2026 to 2028.
The net interest income targets are based on loan growth of around 4 per cent on average per annum for 2026 to 2028, supported by domestic loan growth across retail and corporate segments in line with expected economic growth.
The bank also cited selective and cautious expansion of the international loan portfolio to around €2 billion by the end of 2028 from €1.4 billion in December 2025.
What do you think the updated targets and Wealthyhood investment indicate about Bank of Cyprus’s strategy?
