The Bank of Cyprus on Wednesday announced that its board of directors has approved the annual financial report for the year ended December 31, 2025, confirming strong profitability, lending growth and capital strength.

The report includes the audited financial statements of the Bank of Cyprus Group, comprising the holding company, the Bank of Cyprus Public Company Limited and its subsidiaries.

The annual financial report has been made available on the group’s website for investors and the public.

The bank had already released its financial results announcement on March 31, 2026, alongside an investor presentation detailing strategy and outlook.

These results incorporated updates from the investor update published on March 3, 2026, as well as developments including a minority investment in Wealthyhood and the acquisition of a performing loan and deposit portfolio from the Cyprus Development Bank Public Company Limited.

No material changes were reported compared with the preliminary financial results published on February 18, 2026.

The Bank of Cyprus reported a profit after tax of €481 million for 2025, with €128 million generated in the fourth quarter alone.

“2025 was another strong year for Bank of Cyprus, demonstrated by our financial and operational performance,” said chief executive officer Panicos Nicolaou when the results were first announced.

“Our performance was further supported by cost efficiency, robust liquidity and healthy asset quality,” he added at the time.

The bank recorded new lending of €3 billion, representing a 23 per cent year-on-year increase and marking a record level.

Gross performing loans rose to €10.9 billion, up 8 per cent year-on-year, while the bank’s predominantly retail deposit base increased to €22.2 billion, also up 8 per cent year-on-year.

The expansion in lending was driven mainly by corporate and international demand, according to the chief executive officer.

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

The bank maintained a cost-to-income ratio of 37 per cent, reflecting continued cost discipline.

Its balance sheet remained liquid and resilient, with the non-performing exposures ratio reduced to 1.2 per cent.

The cost of risk remained low at 33 basis points, while the liquidity coverage ratio stood at 321 per cent, supported by surplus liquidity of €9.2 billion.

The group reported a CET1 capital ratio of 21.0 per cent and a total capital ratio of 25.9 per cent, underlining its strong capital position.

Alongside its financial performance, the annual report outlines the group’s exposure to key risks including credit, liquidity, market and operational risks, as well as broader challenges such as geopolitical developments, cybersecurity threats and climate-related risks.

The group stated that it identifies, monitors and mitigates these risks through comprehensive risk management and control mechanisms, although it cautioned that not all risks can be fully predicted or controlled.

The report also highlights that transactions with related parties, including subsidiaries, associates, directors and key management personnel, are conducted under normal commercial terms.

During 2025, the group had 11 directors, five of whom benefited from credit facilities, while three had outstanding balances at year end.

The number of key management personnel stood at 20, all of whom utilised credit facilities during their service, with outstanding balances recorded at the end of both 2025 and 2024.

The value of these transactions remained below 1 per cent of the group’s net assets, and no claims were waived during the year.

The board of directors confirmed its responsibility for preparing the financial statements in accordance with International Financial Reporting Standards as adopted by the European Union and applicable company law.

They stated that the financial statements provide a true and fair view of the group’s financial position and performance, and that the annual report is fair, balanced and understandable for shareholders.

The board also confirmed responsibility for maintaining adequate accounting records, internal controls and measures to prevent fraud, as well as preparing a sustainability statement in line with European reporting standards.

Finally, the company mentioned that it maintains accounting records at its registered offices in Dublin and Nicosia, ensuring compliance with legal and regulatory requirements.