Nicosia, Cyprus. Roemer Capital upgraded Bank of Cyprus to buy and maintained a positive stance on Eurobank, while new data showed Cyprus petroleum sales fell in May 2026 and an ECB study warned that climate shocks are increasingly threatening growth across the European Union.
Roemer Capital raises Bank of Cyprus recommendation
The Cyprus-based investment firm said Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Hellenic banking stocks.
Roemer Capital said fading geopolitical risks, resilient economic growth in Greece and Cyprus, declining funding costs, and the forthcoming transition of Greece to developed-market status should support another phase of outperformance for regional banks.
The firm said it reduced its cost of equity assumptions, aligned its forecasts with first quarter 2026 results, and extended its valuation horizon to the end of 2027, resulting in significantly higher target prices across the sector.
It said investors should remain constructive given what it described as a highly favourable risk and reward profile.
Bank of Cyprus received the most significant upgrade, with Roemer Capital raising its recommendation from hold to buy and identifying it as the strongest capital-return story among the banks under coverage.
Cyprus petroleum sales decline in May
Cyprus’ total sales of petroleum products fell by 5.1 per cent in May 2026 compared with the same month last year.
According to figures released on Friday by the Cyprus Statistical Service, total petroleum sales reached 127,538 tonnes in May 2026.
The annual decrease reflected weaker demand across most fuel categories.
The sharpest declines were recorded in kerosene, down 23.6 per cent, followed by asphalt, down 20.8 per cent, heavy fuel oil, down 18.2 per cent, and marine gasoil provisions, down 13.3 per cent.
The source text also said monthly demand strengthened and that the government moved to shield motorists from elevated fuel costs by extending reduced excise duties.
ECB study highlights climate-related economic risks
A new study published by the European Central Bank found that extreme heat waves and droughts are increasingly threatening economic growth across the European Union.
The study said the agricultural sector in regions such as Cyprus faces substantial risks from compounding climate shocks.
