Cyprus banks’ profit fell by 21.1% in six months — Cyprus Mail
In Cyprus, the banking sector’s total profit for the first six months of 2026 amounted to €456 million — €122 million, or 21.1%, less than in the same period last year. The Central Bank of Cyprus released the aggregate data, Cyprus Mail reports.
Losses from exchange rate differences
In the first half of 2025, the country’s banking sector profit stood at €578 million. The Central Bank of Cyprus linked the decline primarily to losses from exchange rate differences.
The statistics cover the aggregate profitability, balance sheet and capital adequacy indicators of the banking sector as of 30 June 2026. They reflect the situation in the sector as a whole, rather than the results of individual banks.
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Asset growth
Despite the decline in profit, total bank assets increased by €1.15 billion, or 1.6%, in the second quarter compared with March. At the end of June, they amounted to €71.38 billion, compared with €70.23 billion three months earlier.
Asset growth was primarily driven by an increase in loans and advances, as well as debt securities.
Capital ratio increased
The Common Equity Tier 1 (CET1) ratio rose to 25.5% in June from 25.1% in March. The increase of 0.4 percentage points was attributed to growth in CET1 capital, which outpaced the rise in the sector’s total risk exposures.
