The Bank of Cyprus (BoC) on Tuesday announced that its board of directors has approved the annual financial report for the year ended December 31, 2025, including the audited consolidated financial statements of the group.

The bank stated that the report covers the Bank of Cyprus Group, comprising Bank of Cyprus Holdings Public Limited Company, Bank of Cyprus Public Company Limited and its subsidiaries.

It added that the approved annual financial report will be available on the group’s website under the investor relations section.

According to the bank, the results announcement includes updates on strategy and outlook, reflecting the investor update presentation published on March 3, 2026, as well as recent developments including the minority investment in Wealthyhood and the acquisition of a performing loan book and deposits of the Cyprus Development Bank Public Company Limited.

It clarified that there were no other meaningful divergences from the preliminary group financial results announced on February 18, 2026.

The bank reported strong volume growth, with record new lending reaching €3 billion, marking a year-on-year increase of 23 per cent.

Gross performing loans rose to €10.9bn, up 8 per cent year-on-year, while the mainly retail deposit base increased to €22.2bn, also up 8 per cent.

The group recorded profit after tax of €481 million, with €128 million generated in the fourth quarter of 2025.

Return on tangible equity stood at 18.6 per cent for the full year, while basic earnings per share reached €1.10.

The bank highlighted a low cost to income ratio of 37 per cent, reflecting operational efficiency.

The balance sheet remained liquid and resilient, with the non-performing exposure ratio reduced to 1.2 per cent and the cost of risk at 33 basis points.

Meanwhile, the bank’s liquidity coverage ratio stood at 321 per cent, with surplus liquidity of €9.2bn.

The bank reported robust capital and distribution capacity, with the common equity tier 1 ratio at 21.0 per cent and the total capital ratio at 25.9 per cent as at December 31, 2025.

Total equity excluding non-controlling interests reached €2.93bn, compared to €2.82bn as at September 30, 2025 and €2.81bn as at December 31, 2024.

Shareholders’ equity stood at €2.71bn , compared to €2.60bn at the end of September 2025 and €2.59bn a year earlier.

The bank explained that the CET1 ratio improvement was driven by organic capital generation from profitability, partially offset by higher distributions and business growth.

It added that the group’s capital ratios remain above the supervisory review and evaluation process requirements.

As at December 31, 2025, the minimum phased-in CET1 capital ratio requirement stood at 11.38 per cent, while the total capital requirement stood at 16.08 per cent.

The bank also reported that the group participated in the 2025 supervisory stress test exercise conducted by the European Central Bank, achieving improved results compared to 2023 and demonstrating the resilience of the group’s business model.

It stated that the bank was placed in the first bucket based on maximum CET1 depletion and performed favourably compared to the average of 96 ECB-tested banks.

Following the supervisory review process decision received in October 2025, the ECB provided lower non-public guidance for an additional pillar II CET1 buffer, effective from January 1, 2026.

The bank further explained that the countercyclical capital buffer stood at approximately 0.90 per cent as at December 31, 2025 and will increase to 1.50 per cent from January 2026.

It also reported that the other systemically important institution buffer stood at 1.9375 per cent at the end of 2025 and will rise to 2.25 per cent from January 2026.

The bank highlighted its updated distribution policy from 2025, aiming to provide sustainable returns to shareholders through a payout ratio range of 50 to 70 per cent.

For the 2025 financial year, the bank announced a total distribution of €305m, representing a payout ratio of 70 per cent of adjusted recurring profitability.

This includes a cash dividend of €0.70 per ordinary share, of which €0.20 per share was already paid in October 2025 as an interim dividend.

The bank stated that the distribution corresponds to a yield of 9 per cent based on the share price as at December 31, 2025.

The board of directors will propose a final cash dividend of €0.50 per share at the annual general meeting scheduled for May 15, 2026.

Subject to approval, the dividend is expected to be paid on June 24, 2026 to shareholders on record as of May 26, 2026, with an ex-dividend date of May 25, 2026.

The bank noted that the total dividend per share represents a significant increase compared to €0.48 per share distributed for 2024.

It added that the interim dividend paid in October 2025 amounted to approximately €87m, representing around 40 per cent payout of first half adjusted recurring profitability.

The bank also recalled that the 2024 distribution totalled €241m, including a €211m cash dividend and a share buyback of up to €30m.

Moreover, the bank’s share buyback programme was completed in June 2025, with over 5.1m shares repurchased and cancelled at an average price of €5.83 per share.

As at December 31, 2025, the bank had 435,686,031 issued ordinary shares, reflecting a decrease compared to 440,502,243 shares a year earlier due to share cancellations, partially offset by new issuances under incentive plans.