Cyprus Business Now: Eurobank, Paphos hotel, new lending, UK tourism, GSI update
Eurobank has reported adjusted net profits of €711 million for the first half of 2025, marking a decline of 2.9 per cent compared to the same period last year. In addition, the bank’s total net profits fell by 4.3 per cent year-on-year to €691m.
This figure includes a voluntary exit programme cost of €27m at Hellenic Bank and a negative goodwill charge of €38m from the acquisition of CNP Cyprus Insurance.
Earnings per share reached €0.19, while the return on tangible equity stood at 16.6 per cent.
Overseas operations made a significant contribution to performance, with adjusted net profits rising by 34.7 per cent on an annual basis to €374m in the first half of 2025, accounting for 52.6 per cent of the group’s total profitability.
He reported that Anassa’s secluded location and expansive grounds made it well positioned to meet the expectations of high-end travellers, especially post-pandemic.
Wurst said sustainability was now a “must-have” and highlighted efforts to source locally and create “Bespoke Experiences” with Cypriot artisans to strengthen the guest connection with the island’s culture.
He reported that diversity — among both guests and employees — was central to future growth, adding that Anassa was expanding its reach to the US market alongside its traditional European and Middle Eastern base.
While Cyprus aims to attract year-round tourism, Wurst said Anassa was unlikely to operate continuously due to seasonal demand.
Speaking to Politis radio, he said the interconnector project, which would, if completed, connect the electricity grids of Greece, Cyprus and Israel, is “essentially frozen” and is “not being implemented at the moment”.
As such, he said, the Cyprus energy regulatory authority (Cera)’s decision to approve in principle the payment of €25 million to Greece’s independent transmission system operator (Admie) to help finance the project “raises concerns”.
“There are questions regarding the criteria it uses, the logic it follows … It seems to me to be a direct argument for a project which is not being implemented, a project which is frozen, a project over which there are serious doubts over whether it will be implemented,” he said.
The total value of new loans, including renegotiations, rose to €959.5 million, up from €714.4 million the previous month.
The largest boost came from loans to non-financial corporations for amounts exceeding €1 million, which surged to €420.6 million from just €82.6 million in May.
Net new consumer loans saw a slight decline, amounting to €23.2 million compared to €23.5 million the previous month.
This represents an increase of 85.5 per cent compared to the €12.4 million reported in 2023.
Recurring EBITDA also rose by 30.8 per cent to €26.2 million from €20.05 million in the previous year.
The company saw a significant reduction in net losses, which decreased by 33 per cent on a consolidated basis and by 27.8 per cent at the corporate level.
Sales for the first half of 2025 showed positive momentum with an increase of 14.6 per cent compared to the same period in 2024.
Selk said the collaboration aims to “establish a strong foundation for joint initiatives that will strengthen Cyprus’ international image as a competitive business and investment destination”.
The partnership also seeks to “attract foreign companies and investments while supporting the country’s sustainable development”.
Net income fell to $1.7 million, down from $27.6 million in the same period last year, while adjusted net income reached $3.0 million. The company declared a dividend of $0.05 per common share, to be paid on September 5.
President of the company, Loukas Barmparis attributed the decline to a “softer market compared to the previous year,” which weighed on both revenues and earnings from scrubber-fitted vessels.
“We remain focused on fleet renewal, strong liquidity, comfortable leverage and long-term value creation,” he said, noting the dividend reflects the company’s commitment to shareholder returns despite the challenging quarter.
The CBC said that the housing loan portfolio’s composition changes monthly, influencing the weighted average rate.
In contrast, business loan rates fell. For loans up to €1 million, rates dropped to 4.39 per cent from 4.67 per cent, while loans exceeding €1 million fell to 4.04 per cent from 4.65 per cent.
Deposit rates remained broadly stable, with household term deposits at 1.13 per cent and corporate deposits at 1.18 per cent.
In a filing to the Cyprus Stock Exchange (CSE), the company explained that each ordinary share carries one voting right.
According to the announcement, on July 7, 2025, the company cancelled 5,142,602 ordinary shares that had been held as treasury shares in connection with its buyback programme announced on February 18, 2025.
As a result of the cancellation, the total number of voting rights in the company is now 435,686,031.
During the meeting with Tatham, Koumis underlined the strategic significance of the UK market, calling it “historically the largest source of tourists for Cypriot tourism.”
He pointed to consistently high levels of arrivals and reaffirmed the deputy tourism ministry’s commitment to maintaining strong performance, particularly during the winter months.
Tatham, for his part, expressed support for deeper collaboration between the two countries and noted that British tourists continued to hold a very positive view of the Cypriot tourism experience.
It reported that each new destination results from a data-driven strategy involving demand forecasts, commercial performance, network optimisation, and profitability expectations.
The operator of Larnaca and Paphos airports said route planning balances long-term strategy with short-term operational needs such as fleet, crew availability and growth targets.
Flight schedules are set twice a year, six to twelve months ahead, for summer (April–October) and winter (November–March).
Hermes added that airline business models matter, with full-service carriers like Aegean, Lufthansa and Emirates typically operating through central hubs.
The decision was validated by the CSE council during a recent meeting in accordance with Article 184 of the CSE Law. This confirmation follows the announcement made on July 24, 2025, regarding the suspension.
In a separate decision, the CSE council announced that the shares of Unifast Finance & Investments Public Company Ltd, which is listed on the Regulated Market, will continue to be displayed with a cautionary marking on trading boards and price bulletins.
According to an announcement from the ministry, this year’s event, which was held for the third time and is now considered the largest exhibition in the field of supply chain, gathered more than 1,200 companies from 75 countries and attracted over 210,000 business visitors, confirming its status as a leading international business event.
The ministry stated that Cyprus’ participation in the exhibition “strengthened the country’s visibility abroad and deepened trade relations with China and other international markets”, as a large number of individuals, companies and delegations from other countries visited the Cypriot kiosk.
Supermarkets saw a 5.8 per cent rise in value, while specialised food stores surged by 13.5 per cent. Automotive fuel value fell 2.3 per cent but volume rose 8 per cent.
Significant value gains were recorded in information equipment (8.5 per cent), household goods (9.3 per cent), and pharmaceuticals (7.8 per cent).
Clothing and footwear grew 3.4 per cent in value and 9.5 per cent in volume. Non-edible goods rose 6.4 per cent in value and 8.5 per cent in volume.
The Producer Price Index in Industry for June 2025 remained at 123.1 points year-on-year but rose 0.3 per cent from May, Cystat reported. For January–June 2025, the index declined 0.2 per cent compared to 2024.
Monthly gains were noted in water supply and material recovery (2.3 per cent), mining (0.4 per cent) and manufacturing (0.3 per cent), while electricity fell 0.1 per cent.
Year-on-year, mining rose 7.7 per cent and manufacturing 1.4 per cent, offset by drops in water supply (7.4 per cent) and electricity (4.4 per cent). All manufacturing subsectors recorded growth.
The government aims to embed AI in public services by 2030, starting with pilot departments, to reduce bureaucracy and deliver personalised services via the gov.cy portal.
The strategy, due for consultation by November, includes cloud-first policies, ethical oversight, AI literacy, and new roles like Chief Data Officers.
Skourides highlighted Cyprus’ 71 per cent startup growth, international collaborations, and attractiveness as a gateway to EU and GCC markets.
He also contrasted AI’s intuitive adoption with slower crypto uptake, stressing responsible innovation.