Cyprus Business Now: wages, Cyta, TechIsland, social spending, banking, foreign ties

Business & economy wrap-up from the day beforeCyprus’ banking sector continued to demonstrate strong capitalisation and asset quality in the second quarter of 2026, with local credit institutions maintaining capital buffers well above European Union averages, according to figures published by the European Central Bank (ECB) on Friday. Cyprus recorded a Common Equity Tier 1 (CET1) ratio of 21.5 per cent in June, placing it fourth among EU member states and comfortably above the EU average of 16.43 per cent. The ratio measures banks’ highest-quality capital against their risk-weighted assets and provides an indication of their ability to absorb financial losses. The difference highlights the strength of the capital position of Cyprus’ banking sector, with its CET1 ratio approximately five percentage points higher than the European benchmark. Cyprus recorded an average annual full-time adjusted salary of €29,547 in 2025, remaining substantially below the European Union average of €41,464, despite a stronger annual increase than the bloc as a whole, according to figures published by Eurostat. The 5 per cent annual increase in Cyprus brought the country’s average adjusted salary up from €28,143 in 2024, continuing a steady upward trend over the previous three years. However, the gap with the EU average remained considerable, with the Cypriot figure standing at approximately 71.3 per cent of the European average, or €11,917 less annually. The figures also placed Cyprus below several other southern European countries, including Greece’s European neighbours Spain, Italy and Malta, although it remained well ahead of Greece, which recorded one of the lowest averages in the bloc. Alpha Bank has unveiled a five-year strategy targeting more than €4 billion in shareholder distributions or capital deployment by 2030, as the lender seeks to accelerate growth by expanding its services to businesses and households, increasing fee income and strengthening profitability. The plan, called Alpha Accelerated, covers the 2026-2030 period and sets out ambitions to achieve a normalised return on tangible equity (RoTE) of around 16 per cent, annual earnings per share growth of approximately 12 per cent and normalised net profit exceeding €1.4bn by the end of the decade. The strategy was presented at the bank’s 2026 Investor Day, marking what it described as the next phase of its development following the restoration of profitability, balance-sheet resilience and shareholder distributions under its previous plan. “Three years ago, at our 2023 Investor Day, we laid out a clear roadmap to restore Alpha Bank’s profitability, strengthen its balance sheet, and return the Bank to sustainable growth and shareholder distributions,” Alpha Bank chief executive Vassilios Psaltis said. “Today, we can demonstrate that we have delivered on those commitments,” he added. Finance Minister Makis Keravnos and China’s ambassador to Cyprus Yang Yundong discussed ways to expand economic cooperation between the two countries during a meeting in Nicosia on Friday, with trade, investment, shipping and green finance among the areas identified for closer ties. The meeting took place at the Finance Ministry as part of a courtesy visit by the newly appointed ambassador, according to an announcement issued by the ministry. The discussions covered bilateral relations as Cyprus and China mark 55 years of diplomatic ties this year, alongside the fifth anniversary of their relationship being upgraded to a strategic partnership. The talks also focused on prospects for strengthening economic, commercial and investment cooperation ahead of a planned visit by President Nikos Christodoulides to China in early 2027. Cyta has partnered with the Cyprus Productivity Centre (KEPA) to expand practical digital skills training for older people across Cyprus, making educational material on mobile phones and internet use available through free training programmes during 2026 and 2027. The initiative aims to help older people gain greater confidence in using digital technology, with support reaching participants in cities, rural communities and remote areas, Cyta said in an announcement on Friday. The material was developed by Cyta in collaboration with the CYENS Centre of Excellence as part of its Digital Inclusion initiative, which seeks to reduce digital inequalities and ensure more people can benefit from technological advances. It contains straightforward, step-by-step instructions designed to help people with limited experience of technology use mobile phones and the internet more easily and confidently. Cyprus’ social protection expenditure rose by approximately 5.1 per cent year-on-year to an estimated €6.59 billion in 2025, up from €6.28 billion in 2024, while spending remained broadly unchanged as a share of the economy, according to preliminary figures published by Eurostat. However, social protection benefits accounted for 18.07 per cent of Cyprus’ gross domestic product (GDP) in 2025, only marginally higher than the 18.05 per cent recorded in 2024. The figures place Cyprus well below the EU average, where social protection benefits represented 27.49 per cent of GDP in 2025, compared with 27.29 per cent in 2024. Across the bloc, total expenditure on social protection benefits reached an estimated €5.18 trillion, representing a 4.9 per cent increase on 2024. Despite the rise in spending, the EU-wide share of GDP allocated to social protection edged down by 0.2 percentage points in Eurostat’s headline assessment, to 27.5 per cent. Cyprus’ current account deficit widened in 2025 and increased further in the first half of 2026, with Eurobank Research warning that the latest figures point to mounting pressure on the economy’s external balance despite continued growth. “The economy continues to expand, but the widening imbalance in its external accounts deserves closer attention,” the research team said. The Central Bank of Cyprus (CBC) has revised the 2025 current account deficit to 8.8 per cent of gross domestic product (GDP), up from the previously reported 6.4 per cent. The deficit for 2024, meanwhile, was revised down to 5.5 per cent of GDP, from an earlier estimate of 8.2 per cent. “These changes show that the gap widened in 2025, reversing the earlier picture of improvement,” Eurobank Research said, adding that figures for the first six months of 2026 showed further pressure. The current account tracks earnings and payments between Cyprus and the rest of the world, including trade, investment income and transfers, such as funds received from the European Commission. Cyprus recorded the strongest annual increase in retail trade across the European Union in September 2026, with sales volumes rising by 7.6 per cent as retail activity across the bloc edged down month-on-month, according to Eurostat. The EU’s statistical office said retail trade volume increased by 0.4 per cent in the euro area and 0.9 per cent across the EU compared with September 2025. Cyprus topped the annual rankings, ahead of Sweden, where retail trade rose by 6.9 per cent, and Bulgaria, which recorded a 5.7 per cent increase. The largest annual declines were registered in Germany, down 2.4 per cent, Romania, down 2.3 per cent, and Spain, down 1.5 per cent. The figures point to continued strength in Cyprus’ retail sector, although the latest monthly data showed a more modest performance across Europe. Cyprus needs to cut bureaucracy, United States Ambassador John Breslow said on Friday warning that the departure of even a single American company over investment barriers is “an avoidable loss”. Speaking at the first annual conference of the American chamber of commerce in Cyprus, Breslow said he was concerned about opportunities going unexploited. “Even one company that leaves is one more than it should be,” he said. He called on Washington and Nicosia to work together to reduce obstacles, saying a stable and predictable regulatory framework is essential for attracting large, long-term investment. The National Bank of Greece purchased more than 1.28 million of its own shares for a total of €19,790,281.65 between October 26 and November 3, 2026, as part of its ongoing share buyback programme approved by shareholders earlier this year. The bank acquired 1,282,231 ordinary shares traded on Euronext Athens at a weighted average price of €15.4343 per share, according to an announcement. The largest purchases took place on October 26 and 27, when the bank bought 482,231 shares for approximately €7.38 million and a further 760,000 shares for €11.78 million respectively. TechIsland has welcomed the government’s decision to revise the registration framework for companies with foreign interests, saying the changes will help international businesses remain and expand in Cyprus, encourage further investment and support the development of local talent, while strengthening the country’s position as a technology and business destination. In a statement, TechIsland’s board of directors described the decision as “a significant and positive development that addresses important business needs” and creates “more favourable conditions for companies to maintain and expand their long-term presence in Cyprus, while supporting further investment and the development of local talent.” The decision, approved by the Council of Ministers on October 27, following a proposal by the Ministry of Energy, Commerce and Industry, introduces changes to the registration framework, placing greater emphasis on companies with substantial economic activity and a genuine contribution to the Cypriot economy. Cyprus and Vietnam have explored opportunities to expand bilateral trade, investment and technological cooperation at a business forum held in Nicosia on Friday, with the Cyprus Chamber of Commerce and Industry (Keve) highlighting the potential for closer economic ties between the two countries. The Cyprus–Vietnam Two-Way Trade and Investment Forum, hosted at the chamber’s premises, brought together government representatives, diplomats, business organisations and research institutions to examine ways of strengthening commercial relations and encouraging new partnerships. In its announcement, Keve said the discussions focused on high-value sectors, including shipping, tourism, professional services, technology and renewable energy, as well as research, innovation and higher education. Opening the forum, Keve Deputy Secretary General Emilios Michael highlighted what he described as the complementary strengths of the two economies, arguing that geographical distance should not prevent closer business cooperation. He pointed to Vietnam’s dynamic economic development and expanding role in international supply chains, while presenting Cyprus as a business and investment hub offering companies access to the European market. Industrial producer prices in Cyprus rose by 2.6 per cent in September 2026, matching the European Union average and accelerating sharply from the 0.2 per cent increase recorded in August, according to Eurostat. The latest increase followed a particularly strong rise in May, when domestic industrial producer prices in Cyprus climbed by 3.2 per cent, and came amid mounting energy-related cost pressures across European industry. Across the EU, industrial producer prices increased by 2.6 per cent in September compared with August, while the euro area recorded a 2.5 per cent increase. The figures marked an acceleration from August, when prices rose by 1.9 per cent across the EU and 2 per cent in the euro area. On an annual basis, industrial producer prices increased by 11.1 per cent in the euro area and 10.9 per cent across the EU in September compared with the same month in 2025. The Central Bank of Cyprus (CBC) on Friday announced three opportunities for recent graduates and postgraduate students through its internship and graduate programme, offering placements in its information technology and human resources directorates. The programme is designed to provide practical professional experience, help participants develop their skills and give them first-hand exposure to the central bank’s operations. Two fixed-term positions are available in the IT Infrastructure Administration Section, with candidates expected to assist with projects and day-to-day operational activities. Responsibilities include preparing, configuring and deploying computers for bank staff, as well as preparing decommissioned equipment for donation to charitable organisations. A third position is available as a graduate trainee in the Human Resources Directorate, with responsibilities including supporting daily operations, processing and validating employee information and providing administrative assistance. CISCO Ltd led trading on the Cyprus Stock Exchange (CSE) in October, accounting for 33.54 per cent of market activity including package transactions, according to the exchange’s official members’ market share report published on October 30, 2026. The brokerage recorded a 34.25 per cent share excluding packages, with transactions valued at €4.06 million. Mega Equity Financial Services Ltd ranked second, capturing 23.63 per cent of trading including packages and 21.06 per cent excluding them, with a cumulative transaction value of €2.86 million. Atlantic Securities Ltd took third place when package transactions were included, with a 15.70 per cent share, while Argus Stockbrokers Ltd ranked third without packages, accounting for 15.40 per cent. Eurobank EFG Equities Investment Firm SA recorded a 7.07 per cent share including packages and 8.17 per cent excluding them. For Cyprus and the rest of Europe’s small businesses, the message from Dublin this week was refreshingly simple. Less paperwork, better access to finance and a European market that actually works as one, rather than 27 different versions of the same thing. After three days of discussions, the SME and Clusters Assembly 2026 concluded this week with a familiar complaint and a rather more pressing demand. Brussels has spent years promising to make life easier for smaller businesses. It is time those businesses started seeing the difference. Held from November 2 to 4, the gathering brought together 559 participants from 40 countries, including entrepreneurs, investors, policymakers, cluster managers and business support organisations. Organised by the European Commission and the Irish Presidency of the Council of the European Union, the event formed the centrepiece of European SME Week, under the theme ‘Connecting for a Competitive Europe’. The Cyprus association representing certified business consultants held its annual general meeting on November 5 at the premises of the Cyprus Chamber of Commerce and Industry (Keve) in Nicosia, reviewing its activities over the past year and setting priorities for the period ahead. According to an announcement on Friday, the meeting covered the organisation’s work and initiatives during 2025-2026, alongside discussions on its future direction and efforts to strengthen the business consulting profession in Cyprus. In his activity report, association president Paris Mavrommatis outlined initiatives aimed at strengthening the organisation’s presence and credibility, improving the services provided to members and expanding its educational and institutional partnerships. Particular emphasis was placed on cooperation with Keve and other organisations to organise training activities, as well as efforts to develop partnerships with academic institutions. The Central Bank of Cyprus (CBC) has suspended sales of Cyprus euro circulation coins minted in 2025 and 2026 due to a technical issue, the central bank announced on Friday. The suspension, which takes effect immediately, will remain in place until further notice, the CBC said. The CBC added that sales of all other numismatic items will continue as normal. Cyprus promoted its professional services and business opportunities to Austrian investors and industry representatives at the annual GEWINN-Messe in Vienna, which took place on October 22 and 23, 2026, with an information stand organised by the Ministry of Commerce. The participation formed part of government efforts to promote Cyprus as a hub for international business activity and professional services. The specialised services exhibition is held every October at the Vienna Exhibition Centre and covers a broad range of financial and investment topics. GEWINN-Messe attracts representatives from Austria’s political, business and economic communities, providing opportunities for information-sharing and the exchange of views. More than 6,700 visitors attended this year’s event, which featured around 80 interviews, discussions, lectures and seminars.