Cyprus banking system sees decline in total non-performing loans
Non-performing loans (NPLs) in Cyprus' banking sector fell slightly to €830 million at the end of April 2026, while the overall NPL ratio remained unchanged, according to figures released on Thursday by the Central Bank of Cyprus (CBC). Specifically, the latest figures showed that total non-performing loans (NPLs) declined from…
Non-performing loan ratio in Cyprus holds steady at 1. 6 per centNon-performing loans (NPLs) in Cyprus’ banking sector fell slightly to €830 million at the end of April 2026, while the overall NPL ratio remained unchanged, according to figures released on Thursday by theCentral Bank of Cyprus (CBC). Specifically, the latest figures showed thattotal non-performing loans (NPLs)declined from€835 million in Marchto€830 millionat the end of April, with the NPL ratio holding steady at1. 6 per centof total lending. Total loansin the banking system stood at€51. 04 billionat the end of April, compared with€51. 35 billiona month earlier. Loans that weremore than 90 days overdueedged down to€633 millionfrom€634 millionin March, while their share of total lending remained unchanged at1. 2 per cent. Compared with the end of2025, total non-performing loans declined by€9 million, from€839 million. The value ofrestructured loansfell to€752 million, down from€777 millionin March and€824 millionat the end of 2025. Of those restructured loans,€319 millioncontinued to be classified as non-performing. The banking sector’stotal accumulated provisionsdeclined to€650 millionfrom€659 millionin the previous month. Of the total provisions,€522 millionrelated to non-performing loans, the CBC added in its report. As a result, thecoverage ratio for non-performing loansimproved slightly to62. 9 per cent, compared with62. 7 per centin March and62. 1 per centat the end of 2025. The CBC’s breakdown by institutional sector showed thathouseholds continued to record the highest ratio of non-performing loanswithin the banking system. Household lending totalled€10. 74 billion, of which€473 millionwas classified as non-performing, representing4. 4 per centof the sector’s loan portfolio. What is more, the CBC reported that household loans that were more than90 days overdueamounted to€377 million. Provisions for household non-performing loans reached€260 million, resulting in acoverage ratio of 55 per cent. Amongnon-financial corporations, total lending stood at€13. 66 billion, while non-performing loans amounted to€326 million, corresponding to an NPL ratio of2. 4 per cent. Provisions for non-performing corporate loans totalled€232 million, producing acoverage ratio of 71. 2 per cent. Within thesmall and medium-sized enterprise (SME)segment, non-performing loans reached€303 millionout of€8. 47 billionin total lending. TheSME non-performing loan ratiostood at3. 6 per cent, remaining above the banking sector’s overall average of1. 6 per cent. The report also showed that provisions covered71. 7 per centof non-performing SME loans. In theother financial corporationssector, non-performing loans amounted to€31 millionagainst€2. 94 billionin total lending. The NPL ratio for other financial corporations was1 per cent, while thecoverage ratioreached96 per cent, the highest among the sectors included in the CBC’s breakdown.