Nicosia: Profitability in Cyprus' banking sector fell by £122 million, or 21.1%, in the first half of 2026, reaching £456 million compared with £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.

According to Cyprus News Agency, total assets of the banking sector increased by £1.146 billion, or 1.6%, during the second quarter of 2026, reaching £71.378 billion at the end of June, from £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.