Cyprus Business Now: BoC, PwC, Alpha Bank, Asbis, inflation, US mission, energy

Business & economy wrap-up from the day beforeThe Bank of Cyprus on Thursday reported profit after tax of €383 million for the first nine months of 2026, up 9 per cent year-on-year, as strong lending and deposit growth, robust fee income and disciplined cost management supported profitability, prompting the lender to upgrade its full-year return on tangible equity (RoTE) guidance to the high teens. The bank, a leading player in Cyprus’ financial system, recorded a RoTE of 18.9 per cent for the January to September period, while its basic earnings per share increased by 9 per cent year-on-year to €0.88. “We continue to execute our strategy by delivering solid lending and deposit growth, whilst maintaining cost discipline and prudent underwriting standards,” Bank of Cyprus chief executive officer Panicos Nicolaou said. Nicolaou said the results reflected the bank’s continued strong financial and operational performance, supported by a solid capital base. “Overall, profit after tax reached €383m, up 9 per cent year-on-year, generating a RoTE of 18.9 per cent,” he said. The bank’s third-quarter profit after tax amounted to €131m, remaining broadly unchanged from the preceding quarter. Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou has concluded two days of meetings at the Plug and Play Silicon Valley Winter Summit, seeking to strengthen Cyprus’ international innovation links and create new opportunities for local companies. Damianou on Thursday said the visit had focused on expanding connections between Cyprus’ innovation ecosystem and international networks, investors and markets, as the government steps up efforts to attract American investment. “Two very productive days at the Plug and Play Summit 2026 in Silicon Valley, focused on strengthening the international connections of our ecosystem and creating new opportunities for collaboration,” Damianou said. The summit forms part of Cyprus’ wider drive to promote itself as a regional technology and innovation hub and strengthen ties with the American business community. PwC Cyprus has highlighted the growing importance of intellectual property as a driver of business growth and competitiveness, following an event in Limassol, which also marked the launch of a new initiative aimed at encouraging knowledge sharing among business professionals. The event, held on Wednesday at the Amathus hotel and titled “Strategic Intellectual Property Management & Valuation”, formed the first gathering of the company’s new Limassol Insights Series. The initiative is designed to establish a platform for knowledge sharing and the exchange of ideas in Limassol, encouraging dialogue among professionals and business leaders while creating networking opportunities and fostering long-term professional relationships. The discussions focused on the identification, protection, strategic management and valuation of intellectual property (IP), with particular attention to technology, software and brands. Cyprus needs a comprehensive national energy strategy built around long-term planning, political consensus and a combination of technologies, rather than relying on individual solutions to address its energy challenges, according to former Cyprus Energy Regulatory Authority (CERA) chairman Andreas Poullikkas. Poullikkas, a professor of energy systems and vice-rector of Frederick University, argued that the country’s energy debate has become oversimplified, particularly on social media, where complex issues are frequently reduced to electricity bills, individual power plants or technologies presented as solutions to every problem. “Energy has moved to the centre of public discussion in recent years. This is positive, because it directly affects every household, every business and the economy as a whole,” he said. “However, particularly through social media, such a complex issue has been simplified to such an extent that it is presented as something straightforward,” he added. Alpha Bank on Thursday unveiled a new corporate identity intended to reflect its transformation and expansion in recent years, with the rebranding also signalling its ambition to strengthen its role as a financial partner to individuals and businesses in Cyprus and other markets. The new identity, launched under the central message “Defining a new together”, presents the bank as an international financial group seeking to combine its expanded capabilities and expertise to provide more comprehensive financial solutions. The group said the rebranding reflects a business that has already undergone substantial change, with a greater emphasis on understanding customers’ individual needs and supporting them throughout different stages of their financial lives. “We have grown in order to become more useful, and our success cannot be greater than the success of those we serve, our customers,” Alpha Bank group chief executive officer Vassilis Psaltis said. Cyprus’ national inflation rate stood at 4.4 per cent in October, according to figures published by the Cyprus Statistical Service (Cystat) on Thursday, while Eurostat’s separate harmonised measure placed the rate at 5.4 per cent. The difference reflects the use of two distinct measures of inflation, rather than necessarily indicating a discrepancy in the underlying price data. The national figures showed that the Consumer Price Index rose by 1.12 per cent month-on-month, increasing by 1.16 points to 105.17 in October from 104.01 in September. The index recorded an average increase of 2.5 per cent during the January to October period compared with the corresponding months of 2025. Energy-related categories recorded some of the strongest annual price increases, with petroleum products rising by 30.6 per cent compared with October 2025, while electricity and water increased by 13.6 per cent. Jumbo recorded a 15 per cent increase in sales in Cyprus in October 2026, as the retail group reported its strongest monthly sales growth of the year across its operations, with overall revenues rising by approximately 13 per cent year-on-year. The Cyprus performance was also stronger than the group’s overall growth for the first ten months of the year, during which sales across its markets increased by approximately 6.7 per cent compared with the corresponding period in 2025. For the January to October period, sales in Cyprus grew by approximately 8 per cent, according to the group’s latest trading update. Jumbo said it had chosen to absorb additional costs arising from the Middle East crisis, including higher energy and transport expenses, as well as the impact of VAT increases and the depreciation of the Romanian leu. The group said consumers had responded positively to its decision to absorb these costs rather than pass them on through higher prices. Ten startups developing technologies ranging from artificial intelligence and energy management to hospitality, recruitment and environmental monitoring will showcase their businesses at Plug and Play Cyprus’ first acceleration programme expo in Limassol on November 11. The ten companies selected for the inaugural cohort have spent the past three months working with the Cyprus team of the global innovation platform and its international network, developing their business models, addressing commercial challenges and preparing to expand their operations. The event, taking place at ETKO in Limassol, will mark the completion of Plug and Play Cyprus’ first acceleration programme, with the founders presenting their progress and plans to policymakers, corporate representatives, investors and other members of the technology ecosystem. The companies participating in the programme are Qubehub.ai, EleniAI, Neura Energy, Fewton, Modelroom, EMBIO Diagnostics, Blend, Cleedee, Digital Fox and Sprouty. Cyprus-based technology distributor Asbis on Thursday reported a record third quarter in 2026, with revenue rising by 135.3 per cent year-on-year to $2.19 billion as demand for artificial intelligence infrastructure and consumer electronics fuelled growth across its markets. The company said it had continued to achieve strong sales growth throughout the quarter, despite the ongoing war in Ukraine, one of its largest markets, and turbulence in the Middle East. July and August sales nearly doubled compared with the same months in 2025, while September marked the first time the company had exceeded $1bn in monthly revenue. For the three months ended September 30, 2026, gross profit increased by 106.3 per cent to $134.8 million, compared with $65.3 million a year earlier. The Cyprus Stock Exchange (CSE) on Thursday clarified how listed companies distribute dividends and how investors should handle payments and securities belonging to deceased shareholders, following a surge in enquiries linked to a dividend distribution by Demetra Holdings Plc. The exchange said it had received a very large volume of telephone and email requests and was making every effort to examine them within a reasonable timeframe. It urged investors to wait for a response rather than send repeated reminders, warning that frequent follow-ups could delay the processing of requests. In a statement, the CSE explained that cash distributions, including dividends, bond interest and bond repayments, are made by listed companies through a paying bank. Entrepreneur and philanthropist Sir Stelios Haji-Ioannou has awarded €30,000 in scholarships to three students enrolled in the University of Cyprus MBA programme, continuing an initiative aimed at supporting education and widening opportunities for young people. The scholarships, awarded for the fourth consecutive year, cover the full tuition fees of the successful candidates and are granted on the basis of academic and socioeconomic criteria following an assessment process. The recipients for the 2026-2027 academic year are George Solomonides, Kartik Rautela and Loizos Georgiades, who were selected following a detailed evaluation. The awards were presented at a ceremony at the University of Cyprus on Thursday by Rena Rouvitha Panou, a member of the board of the Stelios Philanthropic Foundation, on behalf of Haji-Ioannou. Cyprus’ industrial turnover increased by 5.6 per cent in August 2026 compared with the same month a year earlier, according to figures released by the Cyprus Statistical Service (Cystat). The Industrial Turnover Index reached 121.4 points in August, using 2021 as its base year, while the increase for the first eight months of 2026 stood at 4.1 per cent compared with the corresponding period of 2025. Manufacturing, the largest component of industrial activity, recorded a 3.7 per cent annual increase, with its turnover index reaching 109 points. Growth was also recorded across the other industrial sectors covered by the figures. Mining and quarrying turnover rose by 12.5 per cent year-on-year, while electricity supply increased by 10.2 per cent. Water supply and materials recovery recorded a 10.1 per cent increase compared with August 2025. The National Bank of Greece (NBG), which operates in Cyprus through its local subsidiary, reported profits after tax of €996 million for the first nine months of 2026, supported by stronger lending income, rising fees and resilient economic activity, as the Greek banking group continued investing in technology and expanding its digital services. The bank’s performance translated into a 15.7 per cent return on tangible equity (RoTE), exceeding its full-year target of more than 15 per cent, while earnings per share reached €1.48, already above its 2026 guidance of more than €1.40. Chief executive officer Pavlos Mylonas said the Greek economy had continued to demonstrate resilience despite persistent geopolitical uncertainty, maintaining stronger growth than the euro area. “Economic activity remains supported by sustained investment momentum, resilient domestic demand and a solid tourism season,” Mylonas said. He also pointed to sound public finances, stronger private sector balance sheets and favourable financing conditions, including record foreign direct investment inflows and increased capital market fundraising, as factors supporting continued economic growth. Aegean Airlines will publish its third-quarter and nine-month trading update on November 16, 2026, after the close of trading on the Athens Exchange, the airline confirmed this week. The update is expected to provide a fresh indication of the Greek carrier’s performance following a difficult first half, when higher fuel and emissions costs and disruption to its Middle East network weighed on earnings. Aegean reported revenue growth of 4 per cent in the first half of 2026, reaching €816.6 million, while passenger traffic rose 3 per cent to 7.77 million. However, the company recorded a €3.3 million net loss for the six-month period, compared with a €47.9 million profit a year earlier. The airline returned to profitability in the second quarter, posting net earnings of €18.5 million, although this was 66 per cent lower than the €54.5 million recorded in the same period of 2025. Cyprus has just reported a €1.61 billion government surplus, its finances are looking remarkably healthy and international investment continues to bring money into the economy. There is plenty to celebrate. But before anyone gets too carried away with the numbers, Ireland offers an uncomfortable reminder that a wealthy country and a prosperous population are not necessarily the same thing. Across the Irish Sea, a government expecting a surplus of €9.5bn in 2027 is discovering that collecting billions from some of the world’s richest companies is considerably easier than ensuring ordinary people can afford a decent home. That contradiction is at the heart of a new Financial Times (FT) investigation, published this week, examining why one of Europe’s wealthiest economies still struggles with housing, infrastructure, healthcare and the cost of everyday life. For Cyprus, which has spent years attracting foreign investment and building its international business sector, the Irish experience deserves closer attention. President Nikos Christodoulides has announced that he will travel to the United States at the end of November to strengthen cooperation and investment opportunities, as Cyprus prepares to participate in the Plug and Play Silicon Valley Winter Summit. In a post on X, Christodoulides said Cyprus would be represented at the summit by a delegation led by the deputy minister of research, innovation and digital policy, with the active participation of Cyprus Catalyst. “Our aim is to turn international contacts into partnerships, investments and real opportunities for Cyprus,” he said. The president recalled that during his visit to San Francisco last April, he met Cypriot scientists and entrepreneurs who have distinguished themselves in technology and innovation. That meeting led to the creation of Cyprus Catalyst, an initiative by Cypriot professionals working in technology, science and innovation in the United States.