Cyprus credit servicers manage €9.3bn in household loans

Cyprus’ credit servicers and credit acquiring companies held a €19.28 billion loan portfolio at the end of June 2026, with the sector’s non-performing loan ratio remaining close to 95 per cent, according to a report from the Central Bank of Cyprus (CBC).

The CBC said the aggregate data covered the Credit Servicers (CSs) and Credit Acquiring Companies (CACs) sector, with June 30, 2026 as the latest reference date.

The total contractual balance of the sector’s loan portfolios stood at €19.276 billion at the end of June.

Of this amount, €9.345 billion related to households, while €9.205 billion concerned non-financial corporations.

A further €726 million was related to other financial corporations.

NPL ratio remains high

The sector’s non-performing loan ratio stood at 94.6 per cent at the end of June, remaining broadly unchanged from March 2026.

The figure highlights the continuing concentration of distressed lending within the portfolios managed by credit servicers and credit acquiring companies.

The net book value of the loan portfolios stood at €2.671 billion at the end of June.

The difference between the contractual balance and net book value reflects, among other factors, adjustments associated with the valuation and accounting treatment of the loan portfolios.

More than 62,000 borrowers

The total number of borrowers in the sector stood at 62,771 at the end of June.

Households accounted for the overwhelming majority, with 53,494 borrowers.

Non-financial corporations accounted for a further 9,214 borrowers, while other financial corporations accounted for 63 borrowers.

The figures cover loans managed by credit servicers and credit acquiring companies operating in Cyprus.

Property holdings decline

The number of properties held by credit acquiring companies also fell during the second quarter.

CACs held 7,714 properties at the end of June, down from 8,014 in March.

This represented a reduction of 300 properties over the three-month period.

The open market value of the properties declined in parallel, falling from €968 million in March to €918 million in June.

The €50 million reduction represented a fall of around 5.2 per cent in the open market value of properties held by CACs.

The latest figures provide an updated picture of the scale of loan portfolios and property holdings within Cyprus’ credit servicing and credit acquisition sector, as the CBC continues to publish aggregate data on the industry.