Nicosia: The profitability of the banking sector in Cyprus has declined in the first nine months of 2025, while total assets within the banking sector have risen in the third quarter of 2025 according to the updated aggregate Cyprus banking sector data (profitability, balance sheet and capital adequacy data) with reference date 30 September 2025 published on Tuesday by the Central Bank of Cyprus.
According to Cyprus News Agency, the CBC reports that the profitability of the banking sector has decreased by £237 million, from £953 million in September 2024 to £716 million in September 2025. This decline is primarily attributable to a reduction in net interest income.
Total assets within the banking sector have increased in the third quarter of 2025 by £835 million or 1.2%, from £66,976 million in June 2025 to £67,811 million in September 2025. This growth is mainly driven by an increase in loans and advances.
The Common Equity Tier 1 (CET1) ratio of the banking sector has decreased in the third quarter of 2025 by 0.2 percentage points, from 26.3% in June 2025 to 26.1% in September 2025. This decline is primarily due to an increase in the total risk exposure amount, which has outweighed the increase of the CET1 Capital, the press release concludes.