The Cyprus banking sector closed 2025 with lower but still substantial profitability, according to updated aggregate figures released by the Central Bank of Cyprus.
Net profit came to €1 billion, down by €165 million, or 13.9%, from the €1.2 billion recorded in 2024. The main reason for the decline was a reduction in net interest income.
At the same time, total assets in the banking sector rose by €4.4 billion, or 6.6%, to €70 billion from €65.6 billion a year earlier. The increase was driven mainly by growth in loans, advances and debt securities.
Capital strength also improved, with the CET1 ratio rising to 25.8% from 24.7% at the end of 2024. In other words, despite lower profits, the banking system is entering 2026 with a larger balance sheet and stronger capital buffers.
