Cyprus non-performing loans drop to €2.08 billion

The total value of non-performing loans (NPLs) in the Cypriot banking system at the end of August 2023 saw a decrease of €16 million, dropping to €2.08 billion from €2.10 billion at the end of the previous month.

In addition, the overall provisions of the banks reached 52.5 per cent, according to a report released on Monday by the Central Bank of Cyprus (CBC).

The report revealed that total loans in the Cypriot banking system increased by €70 million at the end of August, reaching €24.39 billion, compared to €24.32 billion, with the NPL ratio to total loans being at 8.6 per cent, down from 8.7 per cent the previous month.

Moreover, loans with a delay of over 90 days remained at €1.66 billion at the end of August, accounting for 6.8 per cent of the total loans.

The cumulative provisions of the banking system increased to €1.20 billion in August 2023, up from €1.19 billion in July 2023, of which €1.09 billion pertained to NPLs, with the coverage ratio at 52.5 per cent.

Furthermore, the total value of restructured loans recorded a €37 million reduction, amounting to €1.92 billion, representing 7.9 per cent of total loans.

Restructured loans still classified as NPLs decreased to €941 million, compared to €946 million the previous month.

Corporate NPLs decreased by €10 million, reaching €860 million in August 2023, down from €870 million in July 2023, accounting for 7.3 per cent of total business NPLs.

Additionally, the total provisions for business NPLs stood at 68.6 per cent.

The total value of restructured corporate loans, which continue to be classified as NPLs, dropped to €464 million.

What is more, the report also showed that household non-performing loans in August 2023 decreased by €7 million, totalling €1.18 billion, accounting for 11.1 per cent of the total household loans.

The total provisions against household NPLs reached 39.7 per cent.

Finally, restructured household loans reached €690 million, of which €443 million still continue to be classified as NPLs.