Non-performing loans (NPLs) in the Cypriot banking sector stood at €1.4 billion at the end of July 2025, according to new data from the Central Bank of Cyprus, marking a €16 million decrease compared to June levels.
By the end of July, the NPL ratio fell slightly to 5.5%, from 5.6% in June, mainly due to repayments, upgrades to performing categories, and loan write-offs.
Loans in arrears for more than 90 days amounted to €1.15 billion, or 4.4% of total loans.
Households and small and medium-sized enterprises (SMEs) continue to account for the largest share of NPLs, €794 million for households and €613 million for businesses.
The coverage ratio of NPLs with loan-loss provisions increased marginally to 62.2%, from 62.0% in June.
Total loans rose to €26.0 billion, compared to €25.8 billion a month earlier. Restructured loans amounted to €1.2 billion, of which €0.6 billion remain classified as non-performing.
NPLs continued their downward trend in 2024, dropping to 6.2% of total loans, from 7.9% in 2023. However, as noted in the Central Bank’s Financial Stability Report 2024, legacy NPLs remain relatively high, keeping the overall ratio above the EU average.