Bank of Cyprus reports €121 million profit after tax in first quarter of 2026

Nicosia, Cyprus. The Bank of Cyprus reported a profit after tax of €121 million for the quarter ended March 31, 2026, citing strong lending growth, resilient asset quality and robust capital generation. The bank reported a return on tangible equity of 18.0 per cent in the first quarter.

Financial performance

The bank said basic earnings per share reached €0.28. It reported a cost-to-income ratio of 37 per cent, which it attributed to continued cost discipline.

Lending and deposits

New lending totalled €829 million during the quarter, a 9 per cent increase compared with the previous quarter, the bank said. Gross performing loans rose to €11.1 billion, up 2 per cent quarter-on-quarter, while the mainly retail-funded deposit base remained stable at €22.3 billion.

Asset quality and risk

The bank said its non-performing exposure ratio declined further to 1.1 per cent. It reported that the cost of risk reflected a net release of 17 basis points, driven by customer-specific reversals.

Executive comments

Chief executive officer Panicos Nicolaou said the bank “started 2026 strongly” with profit after tax of €121 million and a return on tangible equity of 18.0 per cent, which he said was above the bank’s mid-teens full-year target, supported by a strong capital base. He said the performance was underpinned by a stabilising net interest income, continued cost discipline and robust asset quality, with non-performing exposures declining to approximately 1 per cent.
Nicolaou said the bank granted new loans of €829 million during the first quarter while maintaining prudent underwriting standards, and said the performing loan book grew by 2 per cent since the beginning of the year, supported by domestic and international demand.

What do you think Bank of Cyprus’s first-quarter results indicate about lending demand in 2026?