Cyprus banking sector NPL ratio holds at 1.6 per cent

The non-performing loan ratio of Cyprus’s banking sector remained unchanged at 1.6 per cent at the end of June 2026, according to updated data published by the Central Bank of Cyprus (CBC) on Thursday.

The latest aggregate data, which cover non-performing loans and have a reference date of June 30, 2026, showed that the ratio was unchanged from the end of March.

The ratio is calculated using the methodology applied in the European Banking Authority’s (EBA) risk dashboard, which includes loans and advances to central banks and credit institutions.

Although the NPL ratio remained stable, the coverage of non-performing loans by provisions increased during the second quarter.

The coverage ratio rose to 64.9 per cent at the end of June, compared with 62.7 per cent at the end of March.

This means that provisions covered a larger proportion of the banking sector’s non-performing loans than three months earlier.

Meanwhile, the total value of restructured loans stood at €0.70 billion at the end of June, the CBC reported.

Of this amount, €300 million continued to be classified as non-performing loans, the report concluded.