Cautious stance on loan buybacks
Bank of Cyprus acquisitions strategy does not currently include purchasing performing loans from credit-acquiring companies in order to “bring them back” onto its balance sheet, according to management statements.
During a press conference presenting the bank’s 2025 financial results, CEO Panicos Nicolaou made clear that the prospect of acquiring performing loan portfolios from credit-acquiring firms appears unlikely at this stage.
The Bank of Cyprus acquisitions approach, he stressed, remains disciplined and focused on protecting depositor funds rather than pursuing transactions for the sake of expansion.
“There is nothing at the moment. We are very disciplined and will not buy something just to buy it or because we have capital,” Nicolaou said. Any potential move would only proceed if it supports the bank’s business model and makes sense in terms of return on capital.
Credit-acquiring firms: “Not an easy exercise”
Asked whether the bank would consider acquiring a healthy portfolio from credit-acquiring companies, Nicolaou described such a move as complex and demanding.
“It requires caution; it is not an easy exercise. We must ensure there is the ability to repay the loan within a reasonable timeframe,” he noted, placing emphasis on borrowers’ repayment capacity.
He pointed out that the definition of a performing loan differs between banks and credit-acquiring companies. For the bank, strict assessment criteria apply to ensure that borrowers’ salaries and income make each loan sustainable within a realistic period.
“We are not investing our own money; we are investing the money of Cypriot depositors. Therefore, we must be very careful where we invest it,” he added.
The comments come amid ongoing discussion about the large stock of non-performing loans transferred outside bank balance sheets, which still forms part of Cyprus’ private debt- among the highest in Europe.
Kedipes deal seen as one-off
The bank recently proceeded with the acquisition of a loan portfolio from Kedipes with a gross book value of €58.4 million, based on publicly disclosed transaction data.
That move was described as targeted and concerned a portfolio presented as performing, under a different rationale from any broader “return” of loans from credit-acquiring companies. Based on Nicolaou’s latest remarks, such transactions may not be repeated.
Insurance and strategic expansion
Bank of Cyprus acquisitions remain on the table, but only where they clearly strengthen the business model and improve capital returns.
Nicolaou reiterated that no move will be made “for the sake of doing it,” linking the bank’s strategy to boosting non-interest income streams. Opportunities in the insurance and technology sectors were referenced as areas of interest.
However, he underlined that the bank will not “sacrifice the health of its financials” for expansion, maintaining a disciplined growth strategy aimed at strengthening- not merely enlarging- the institution.
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