Bank Of Cyprus (BOCHGR) H1 2026 earnings summary

Executive summary

• Delivered strong H1 2026 results, exceeding financial targets with profit after tax of €252 mn, up 7% year-over-year, and ROTE at 18.8%-19.2%.

• Maintained a diversified and efficient business model with leading positions in banking, insurance, and payments.

• Interim dividend of €0.24 per share declared, up 20% year-over-year, representing a 44% payout ratio, to be paid in October 2026.

• Robust capital position with CET1 ratio at 20.9% and total capital ratio at 25.8%.

• Cost to income ratio held at 36% for H1 2026, reflecting disciplined cost management.

Financial highlights

• Net interest income for H1 2026 was €369 mn, flat year-over-year; Q2 NII at €188 mn, up 4% sequentially; 2026 NII guidance upgraded to €750 mn.

• Operating profit for H1 2026 was €329 mn; profit before tax at €300 mn, up 8% year-over-year.

• Non-interest income increased 3% to €146 mn, with recurring non-NII up 9% year-over-year, driven by insurance and fee growth.

• Loan book grew 5% year-to-date and 8% year-over-year to €11.4 bn; deposits up 3% YTD and 9% year-over-year to €22.8 bn.

• Basic EPS for H1 2026 was €0.58, up from €0.54 in H1 2025.

Outlook and guidance

• Confident in achieving return towards the upper end of mid-teens ROTE/ROE target for 2026; targeting sustainable mid-teens ROTE or above 20% on a 15% CET1 ratio for 2026-2028.

• NII guidance for 2026 upgraded to €750 mn, reflecting strong volume and rate outlook.

• Cost to income ratio expected to remain below 40% for 2026.

• Dividend payout ratio targeted at up to 90% for 2026 and up to 100% for 2027 and 2028, subject to market conditions and board approval.

• Ordinary distribution target at 70% payout ratio, with potential top-up dividend up to 20% for 2026.