The profitability of the banking sector declined in the first three months of 2026 by 23.6% compared to last year, according to the Central Bank of Cyprus.
The CBC published on Friday the updated aggregate Cyprus banking sector data (profitability, balance sheet and capital adequacy data) with a reference date of 31 March 2026.
In a press release it said that the profitability of the banking sector has declined in the first three months of 2026 by pound 62 mn or 23.6% to pound 202 mn from pound 264 mn in March 2025.
This decrease, it noted, is primarily driven by a reduction in net interest income (NII) and exchange differences loss.
Total assets within the banking sector have risen in the first quarter of 2026 by pound 274 mn or 0.4%, to pound 70,235 mn in March 2026 from pound 69,961 mn in December 2025.
This growth, the CBC said, is largely attributed to an increase in loans and advances and debt securities.
Meanwhile, the Common Equity Tier 1 (CET1) ratio of the banking sector declined in March 2026 by 0.7 percentage points to 25.1%, from 25.8% in December 2025.
This decrease is mainly due to an increase in total risk exposure amount which has outweighed the increase of CET1 Capital, the CBC concluded.