Bank Of Cyprus Holdings Public Limited Company (BOCH) Q2 2025 earnings summary

Executive summary

• Profit after tax for 1H2025 reached €235 million, with ROTE at 18.4%, driven by strong new lending of €1.6 billion and improved liquidity.

• Gross performing loans rose 5% since December 2024, mainly from corporate and international demand; NPE ratio reduced to 1.7% and cost of risk at 36 bps, reflecting robust asset quality.

• Interim dividend of €0.20 per share (c.40% payout) introduced, with a 2025 distribution target of 70% payout ratio.

• CET1 ratio at 20.6% and Total Capital ratio at 25.8% as of June 30, 2025; tangible book value per share up 10% year-over-year.

• Maintained focus on prudent capital management, non-interest income diversification, and cost discipline.

Financial highlights

• Net interest income for 1H2025 was €368 million, down 12% year-over-year; net interest margin at 3.05% for 1H2025, down 61 bps year-over-year.

• Non-interest income rose 10% year-over-year to €141 million, covering 77% of Q2 operating expenses.

• Total income declined 7% year-over-year to €509 million; operating profit down 14% to €312 million.

• Cost to income ratio at 36% for 1H2025, up from 30% in 1H2024; operating expenses rose 8% year-over-year.

• EPS at €0.54; profitability remained flat quarter-on-quarter at €118 million.

Outlook and guidance

• 2025 guidance targets 70% distribution payout, with interim dividend at c.40% of 1H2025 earnings.

• ROTE for FY2025 expected at the upper end of mid-teens; cost to income ratio to remain around 40% in a normalized 2% rate environment.

• Loan growth for 2025 likely to exceed 4% target, with growth skewed to 1H2025 and international expansion emphasized.

• Net interest income for 2025 expected to be slightly below €700 million, stabilizing above €650 million in 2026.

• Cost of risk for 2025 expected at the lower end of the normalized 40-50 bps range.