Cyprus non-performing loans ratio steady at 7.4 per cent

Non-performing loans (NPLs) in the Cypriot banking sector remained virtually unchanged in May, totalling €1.77 billion compared to €1.80 billion the previous month, according to a report released this week by the Central Bank of Cyprus (CBC).

In addition, the CBC report showed that the NPL ratio against total loans held steady at 7.4 per cent.

Moreover, when compared to the end of December 2023, NPLs in Cyprus have decreased by just €81 million.

According to the CBC report, the total amount of loans overdue by more than 90 days remained stable at €1.39 billion, which represents 5.8 per cent of the total loan portfolio.

The coverage ratio for NPLs rose slightly to 54.4 per cent from 54.2 per cent the previous month. Provisions for NPLs total €786 million.

Additionally, the total amount of restructured loans decreased in May to €1.42 billion from €1.44 billion in the previous month.

According to the European Banking Authority’s guidelines, restructured loans that continue to be classified as non-performing amounted to €0.79 billion, down by €4 million compared to April.

Household NPLs in May remained unchanged at €971 million, representing 54 per cent of the total non-performing loans.

Meanwhile, corporate NPLs decreased slightly to €760 million from €762 million the previous month. Of these, €695 million were attributed to small and medium-sized enterprises.

It should be noted that loans overdue by 90 days for households rose marginally to €824 million in May, up from €822 million in the previous month.

Conversely, non-performing loans for businesses slightly declined to €536 million from €538 million in April.

The coverage ratio for business NPLs was 69 per cent, with the ratio for small and medium-sized enterprises at 70 per cent.

Finally, the report stated that the coverage ratio for household NPLs stood at 42 per cent.