Cyprus banking sector performance report for 2025

The Central Bank of Cyprus released data on Tuesday regarding the banking sector's performance as of December 31, 2025. Total annual profitability fell by 165 million euros, representing a 13.9% decrease, dropping to 1.024 billion euros from 1.189 billion euros in 2024. Officials attributed this decline primarily to a reduction in net interest income. Conversely, total banking assets grew by 4.357 billion euros, an increase of 6.6%, reaching 69.961 billion euros compared to 65.604 billion euros the previous year. This asset expansion was driven by growth in loans, advances, and debt securities. The Common Equity Tier 1 (CET1) capital ratio improved by 1.1 percentage points, rising from 24.7% at the end of 2024 to 25.8% by the end of 2025. This capital strengthening resulted from an increase in CET1 capital combined with a reduction in total risk-weighted exposure.