Cyprus non-performing loan ratio stable at 8.3 per cent in November

The Non-Performing Loan (NPL) ratio in Cyprus remained unchanged at 8.3 per cent in November 2023, according to a report released on Thursday by the Central Bank of Cyprus (CBC).

According to the report, the total amount of Non-Performing Loans dropped just under €2 billion, standing at €1.99bn.

Within the total loan portfolio of €24.17bn, Non-Performing Loans accounted for €1.99bn, down from €2.015bn in October.

Moreover, the NPL ratio in relation to overall loans decreased marginally from 8.33 per cent in October to 8.27 per cent.

Among the total Non-Performing Loans, €1.56bn are overdue by more than 90 days. These loans remained at the previously recorded ratio of 6.5 per cent observed in October.

The CBC report also showed that restructured loans amounted to €1.7bn, with €895 million remaining classified as non-performing.

The percentage of restructured loans in relation to the total loan portfolio decreased from 7.5 per cent in October to 7.2 per cent.

The accumulated provisions in November reached €1.13bn, of which €1.02bn was attributed to Non-Performing Loans.

The ratio of total accumulated provisions to Non-Performing Loans increased slightly to 51 per cent, compared to 50.8 per cent in October.

Household Non-Performing Loans accounted for 10.5 per cent, totalling €1.11bn. In addition, household loans of €633m underwent restructuring, with €402m remaining non-performing.

Non-financial corporations’ loans amounted to €841m, constituting 7.1 per cent of total loans to non-financial corporations. Of these, €747m belonged to Small and Medium Enterprises (SMEs).

What is more, Non-Performing Loans of non-financial corporations underwent restructuring, reaching €1.04bn, of which €458m remained non-performing.