Bank Of Cyprus Holdings Public Limited Company (BOCH) Q1 2025 earnings summary

Executive summary

• Maintained leading market position in Cyprus with a strong, diversified business model across banking, insurance, and payment solutions, supported by a resilient, service-based economy outperforming the euro area in growth.

• Profit after tax reached €117 mn in Q1 2025, up 9% sequentially but down 12% year-over-year, with ROTE at 18.3% and EPS at €0.27.

• Net interest income declined 6% sequentially and 13% year-over-year to €186 mn, mainly due to lower reference rates and higher funding costs; non-interest income rose 10% year-over-year to €69 mn.

• Cost to income ratio at 34%, among the lowest in Europe, reflecting disciplined cost management.

• NPE ratio reduced to 1.8% with coverage at 122%, following successful NPE sales and robust credit quality.

Financial highlights

• Net interest income for Q1 2025 was €186 mn, with a net interest margin of 3.13%, down 21 bps from the previous quarter.

• Record new lending of €842 mn, up 16% quarter-on-quarter and 25% year-on-year, with gross performing loans at €10.45 bn, up 3% since December 2024.

• Non-interest income at €69 mn, up 10% year-on-year, driven by higher fees and insurance results, covering nearly 80% of operating expenses.

• Cost to income ratio at 34%; staff costs up 5% year-on-year, other OpEx up 14% year-on-year; total expenses at €95 mn, up 3% year-on-year.

• Return on tangible equity (ROTE) at 18.3%; tangible book value per share up 15% year-on-year to €6.04.

Outlook and guidance

• Full-year 2025 guidance confirmed: net interest income expected below €700 mn, stabilizing above €650 mn in 2026; cost to income ratio ~40%; cost of risk at lower end of 40-50 bps; ROTE in mid to high teens.

• Loan book growth target of 4% for 2025 and 2026, with Q1 performance ahead of plan.

• Distribution policy upgraded to 50-70% payout ratio, with interim dividends under consideration.

• Confident in maintaining high-teens ROTE and strong capital ratios despite lower interest rate environment.