Bank Of Cyprus Holdings Public Limited Company (BOCH) Q4 2025 earnings summary

Executive summary

• Achieved strong profitability in 2025 with net profit of EUR 481 million, return on tangible equity of 18.6%, and a digitally engaged, diversified franchise.

• Maintained leading market position in Cyprus, serving about 75% of the population and holding top spots in banking, insurance, and payment solutions.

• Loan book and deposits both grew by 8% year-on-year, with new lending reaching a record EUR 3 billion, up 23% from the previous year.

• Asset quality remained solid, with NPE ratio at 1.2% and cost of risk at 33 basis points.

• Declared a 70% dividend payout, totaling EUR 0.70 per share or EUR 305 million for 2025, with €705 million distributed since 2022.

Financial highlights

• Net interest income (NII) for FY2025 was EUR 731 million, down 11% year-on-year, but up 2% quarter-on-quarter in Q4; cost-to-income ratio stood at 37%.

• Gross performing loans rose 8% year-on-year to EUR 10.9 billion; customer deposits increased 8% to EUR 22.2 billion.

• Non-interest income covered 70-80% of operating expenses, with insurance contributing EUR 54 million, up 11% year-on-year.

• Adjusted recurring profitability for dividend calculation was EUR 434 million.

• Basic EPS at EUR 1.10 for 2025.

Outlook and guidance

• FY2025 targets achieved: ROTE at 18.6%, cost to income ratio at 37%, cost of risk at 33 bps, and CET1 generation of 436 bps.

• Distribution policy at the top end with a 70% payout ratio; EUR 218 million cash dividend to be paid in June 2026.

• Continued focus on organic capital generation and maintaining robust liquidity and capital positions.