Nicosia, Cyprus. The Cyprus Development Bank Group (CDB) reported total net income of €17.2 million for 2025, a 25 per cent decline from €22.8 million in 2024. The group said the decrease was mainly driven by lower net interest income.
Net interest income and margins
Net interest income fell 28 per cent year-on-year to €13.8 million from €19.1 million, as interest income declined. The group reported interest income dropped 31 per cent to €17.5 million in 2025 from €25.3 million in 2024, citing lower interest rates and a marginal reduction in average interest-earning assets.
Interest expense decreased 39 per cent to €3.8 million from €6.2 million, which the group attributed mainly to lower interest paid on client deposits. Interest on client deposits fell 34 per cent to €3.2 million from €4.9 million following deposit repricing.
Interest expense on loan capital declined to €0.5 million from €1.1 million, which the group linked to the non-payment of interest on the perpetual unsecured subordinated note.
The net interest margin narrowed to 2.54 per cent from 3.44 per cent in 2024, a decline of 90 basis points. Average interest-earning assets were €548 million, down 1.3 per cent from €555 million a year earlier.
Non-interest income
Non-interest income totalled €3.5 million, down 6 per cent from €3.7 million. This included €2.8 million in net fee and commission income, €0.1 million in foreign exchange gains, €0.1 million in gains from property disposals, and €0.5 million in other income.
Operating expenses
Total operating expenses fell 5 per cent to €16.1 million from €16.9 million in 2024, primarily due to lower staff costs.
What do you expect to be the main driver of CDB’s profitability in 2026?