Profitability in Cyprus’ banking sector fell by pound 122 million, or 21.1%, in the first half of 2026, reaching pound 456 million compared with pound 578 million in the corresponding period of 2025, according to aggregate data published on Thursday by the Central Bank of Cyprus.
The decline in profitability was mainly attributed to a loss from foreign exchange differences.
Meanwhile, total assets of the banking sector increased by pound 1.146 billion, or 1.6%, during the second quarter of 2026, reaching pound 71.378 billion at the end of June, from pound 70.232 billion at the end of March. The increase was mainly attributed to higher loans and advances and debt securities.
As regards capital adequacy, the banking sector’s Common Equity Tier 1 (CET1) ratio increased by 0.4 percentage points to 25.5% at the end of June 2026, from 25.1% at the end of March.
According to the CBC, the increase was mainly due to higher CET1 capital, which offset the increase in the total risk exposure amount.