The Central Bank of Cyprus published updated aggregated banking sector data on non-performing loans as at 31 December 2024, showing the sector’s Non-Performing Loans (NPL) ratio decreased to 6.2% from 6.5% at end-September 2024. The coverage ratio of Non-Performing Exposures (NPEs) with bad credit provisions increased to 58.3% (EUR 0.9 billion) from 55.7% (EUR 0.9 billion). The reduction in NPEs during the fourth quarter of 2024 was mainly attributed to loan repayments, including debt-to-asset swap agreements involving real estate, loan write-offs, reclassification as debt instruments held for sale, and positive movements of successfully restructured loans after the end of the surveillance or monitoring period. Total loans of licensed credit institutions subject to restructuring amounted to EUR 1.3 billion by end-December 2024, of which EUR 0.7 billion remained within NPEs.
Central Bank of Cyprus 2025-04-02
Central Bank of Cyprus releases updated banking sector non-performing loan data showing NPL ratio falls to 6.2% at end-2024
The Central Bank of Cyprus reported a decrease in the banking sector's Non-Performing Loans (NPL) ratio to 6.2% as of December 31, 2024, from 6.5% in September 2024. The coverage ratio for Non-Performing Exposures (NPEs) rose to 58.3%, driven by loan repayments, debt-to-asset swaps, write-offs, and successful loan restructurings. Total loans under restructuring reached EUR 1.3 billion, with EUR 0.7 billion still classified as NPEs.