Non-performing loan ratio in Cyprus holds steady at 1.6 per cent

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 €835 million in March to €830 million at the end of April, with the NPL ratio holding steady at 1.6 per cent of total lending.

Total loans in the banking system stood at €51.04 billion at the end of April, compared with €51.35 billion a month earlier.

Loans that were more than 90 days overdue edged down to €633 million from €634 million in March, while their share of total lending remained unchanged at 1.2 per cent.

Compared with the end of 2025, total non-performing loans declined by €9 million, from €839 million.

The value of restructured loans fell to €752 million, down from €777 million in March and €824 million at the end of 2025.

Of those restructured loans, €319 million continued to be classified as non-performing.

The banking sector’s total accumulated provisions declined to €650 million from €659 million in the previous month.

Of the total provisions, €522 million related to non-performing loans, the CBC added in its report.

As a result, the coverage ratio for non-performing loans improved slightly to 62.9 per cent, compared with 62.7 per cent in March and 62.1 per cent at the end of 2025.

The CBC’s breakdown by institutional sector showed that households continued to record the highest ratio of non-performing loans within the banking system.

Household lending totalled €10.74 billion, of which €473 million was classified as non-performing, representing 4.4 per cent of the sector’s loan portfolio.

What is more, the CBC reported that household loans that were more than 90 days overdue amounted to €377 million.

Provisions for household non-performing loans reached €260 million, resulting in a coverage ratio of 55 per cent.

Among non-financial corporations, total lending stood at €13.66 billion, while non-performing loans amounted to €326 million, corresponding to an NPL ratio of 2.4 per cent.

Provisions for non-performing corporate loans totalled €232 million, producing a coverage ratio of 71.2 per cent.

Within the small and medium-sized enterprise (SME) segment, non-performing loans reached €303 million out of €8.47 billion in total lending.

The SME non-performing loan ratio stood at 3.6 per cent, remaining above the banking sector’s overall average of 1.6 per cent.

The report also showed that provisions covered 71.7 per cent of non-performing SME loans.

In the other financial corporations sector, non-performing loans amounted to €31 million against €2.94 billion in total lending.

The NPL ratio for other financial corporations was 1 per cent, while the coverage ratio reached 96 per cent, the highest among the sectors included in the CBC’s breakdown.