Cyprus Banks: High Capital Ratios in the EU

Cypriot banks hold the third highest Return on Equity (RoE) ratio in the EU, according to data published by the European Central Bank on Monday. Additionally, the Common Equity Tier 1 (CET1) ratio is the fifth highest.

Specifically, the Return on Equity ratio in Cyprus reached 17.7% at the end of December 2024, increasing from 14.7% at the end of the third quarter of 2024 and decreasing from 21.9% at the end of 2023. Romania ranks first with 21.9%, followed by Hungary with 19.7%.

At the European level, the average ratio was 9.3%, while in the Eurozone it reached 8.9%. In Greece, the Return on Equity ratio was 11.7%.

The CET1 ratio of Cypriot banks is also at high levels, ranking fifth in the EU with 20.1%. In the EU, the average ratio is 16.3%.

Regarding non-performing loans in Cyprus, the ratio decreased to 1.6% in December 2024. The total non-performing loan ratio of EU credit institutions was 1.97% in the same month.

The Director General of the European Banking Federation (EBF), Wim Mijs, stated that the Cypriot banking sector has undergone a significant transformation since the 2013 financial crisis, making it stronger and more resilient.