Nicosia, Cyprus. The Central Bank of Cyprus said a shift towards longer-term fixed-rate loans has brought domestic financing conditions closer to those across the eurozone. Separately, Eurobank reported €738 million in net profit for the first half of 2026, including €231 million from its Cyprus operations.
Central bank lending review
The Central Bank of Cyprus published an Economic Brief examining how the European Central Bank’s recent monetary policy cycle reshaped the composition of bank lending in Cyprus.
The report, prepared by the CBC’s Economic Analysis and Monetary Policy Division, said the move towards longer-term fixed-rate lending, particularly in mortgages, reduced new borrowers’ exposure to interest-rate fluctuations, narrowed the gap between lending and deposit rates, and changed the transmission of monetary policy through the Cypriot economy.
According to the central bank, the ECB’s monetary tightening cycle from July 2022 to September 2023, followed by an easing phase between June 2024 and June 2025, was accompanied by significant changes in the composition of new lending in Cyprus.
Eurobank results
Eurobank said adjusted net profit reached €776 million, up 9.2 per cent year on year. Earnings per share stood at €0.20, while return on tangible book value reached 16.6 per cent.
Eurobank chief executive Fokion Karavias said the group had continued to deliver strong results despite geopolitical uncertainty and renewed tensions in the Middle East.
“Despite persistent geopolitical uncertainty and renewed tensions in the Middle East, the economies of our core markets have remained on a solid growth trajectory,” Karavias said.
He said the Greek economy had remained resilient, supported by investment activity, tourism and continued expansion in business lending. He added that economic sentiment and growth in Cyprus and Bulgaria remained robust.
The bank’s non-Greek operations, including Cyprus and Bulgaria, generated €361 million in adjusted net profit, accounting for 46.5 per cent of group profitability.
