Cyprus reports record surplus as Greek bank profits rise

Cyprus reported a record government surplus of €1,589.1 million, representing 4.1% of GDP, for the first eight months of the year. This increase from the €1,269.3 million surplus recorded during the same period last year was driven by higher tax and VAT revenues, despite rising state expenditures. Total revenues rose by 6.0% to €10,842.0 million, with income and wealth tax increasing by 14.2% and VAT net revenues rising by 14.7%.

In Greece, major systemic banks—Eurobank, National Bank of Greece, Piraeus Bank, and Alpha Bank—recorded combined net profits of €2.55 billion in the first half of the year, a 9% increase compared to the previous year. This growth is attributed to enhanced interest income and credit expansion. However, credit growth is concentrated among large business groups, particularly in infrastructure, energy, and green transition projects, leaving limited liquidity access for small and medium-sized enterprises (SMEs) and households.