Cyprus banks report €456m first-half profit as exchange losses weigh
Cyprus banks recorded €456 million in profit in the first half of 2026, down 21.1 per cent year on year, while assets and capital adequacy increased.
Nicosia, Cyprus. Cyprus banks recorded aggregate profits of €456 million in the first six months of 2026, a decline of €122 million, or 21.1 per cent, from the same period a year earlier, Central Bank of Cyprus data showed on Thursday.
The Central Bank of Cyprus attributed the fall in profitability primarily to losses from exchange differences.
Profitability declines
The banking sector’s profit fell from €578 million in the first half of 2025. The figures cover profitability, balance sheet developments and capital adequacy across the Cyprus banking sector, with June 30, 2026 as the reference date.
The data represent an aggregate view of the sector and do not reflect the performance of individual banks.
Assets expand
Despite the decline in profits, the sector’s total assets increased by €1.15 billion during the second quarter, rising 1.6 per cent from March.
Total banking sector assets reached €71.38 billion at the end of June, compared with €70.23 billion three months earlier. The increase was largely driven by growth in loans and advances and debt securities, according to the Central Bank of Cyprus.
Capital adequacy rises
The sector’s Common Equity Tier 1 ratio rose to 25.5 per cent in June from 25.1 per cent in March.
The 0.4 percentage point increase was mainly attributed to growth in Common Equity Tier 1 capital, which exceeded the increase in the sector’s total risk exposure amount.
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