The profitability of the Cypriot 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 March 31, 2026.
It said that the profitability of the banking sector has declined in the first three months by €62 million or 23.6% ,to €202 million from €264 million in March 2025. This decrease, it noted, was primarily driven by a reduction in net interest income and exchange differences loss.
Total assets within the banking sector have risen in the first quarter of the year by €274 million or 0.4%, to €70.23 billion in March, from €69.96 billion 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 ratio of the banking sector declined in March by 0.7 percentage points to 25.1%, from 25.8% in December 2025.
