“2025 was a successful year, during which the Bank achieved all of its quantitative and qualitative targets.”

In an atmosphere marked by both optimism and strong concern over international developments, the General Meeting of the Bank of Cyprus took place. The Group’s leadership presented a picture of strong financial resilience, combining strict risk management discipline with a particularly attractive shareholder reward strategy.

In his speech, Mr. Arapoglou referred to ongoing conflicts, strategic competition among major powers, and instability in the Middle East, with particular reference to the impact of the war in Iran. He noted that inflationary pressures are forcing central banks to reassess their policies. As he stated, “while there had been plans for interest rate cuts within 2026, geopolitical instability appears to be delaying these moves until there is greater clarity.” Oil prices are expected to remain at elevated levels due to strong demand and the absence of signs of “demand destruction,” a factor that continues to keep production costs high.

Despite risks surrounding tourism and energy costs, Mr. Arapoglou expressed confidence in Cyprus’ prospects. He described the country as an “open and resilient economy” that has traditionally outperformed the Eurozone, while possessing the fiscal tools needed to absorb external shocks.

He described 2025 as a successful year during which the Bank achieved all of its quantitative and qualitative targets. This performance translates directly into benefits for shareholders:

2025 Dividend: Increased to the upper limit of the Group’s policy, reaching 70%.

Future Returns: An ambitious roadmap was announced, targeting distributions of up to 90% of profits for 2026, with the prospect of reaching 100% for 2027 and 2028, subject to favorable market conditions.

The Bank’s future strategy is centered around three main pillars:

• Intensifying initiatives focused on the integration of Artificial Intelligence (AI).

• Expanding its model with new products, while also remaining open to acquisitions that meet strict criteria.

• Leveraging strong liquidity ratios as a “solid foundation” against uncertainty.

In closing, the management credited Chief Executive Officer Panicos Nicolaou and his executive team, emphasizing that Bank of Cyprus remains a pillar of reliability for the country’s economy, while safeguarding shareholder interests in an ever-changing world.

Source: Brief