The Central Bank of Cyprus has published updated aggregate data on non-performing loans (NPLs) in the Cypriot banking sector, with a reference date of 31 October 2025, showing a further improvement in headline asset quality metrics versus end-September 2025. The NPL ratio for the banking sector, excluding loans and advances to central banks and credit institutions, fell to 4.2% at end-October 2025 from 4.5% at end-September. Using the European Banking Authority Risk Matrix methodology, the MEX ratio, which includes loans and advances to central banks and credit institutions, declined to 2.1% from 2.3%. The coverage ratio of non-performing exposures (NPEs) with bad provisions rose to 70.7% from 68.5%. Total restructured loans were EUR 1.1bn at end-October 2025, of which EUR 0.5bn remained included in NPEs.
Central Bank of Cyprus 2026-01-23
Central Bank of Cyprus publishes updated aggregate non-performing loans data showing ratios falling in October 2025
The Central Bank of Cyprus reported an improvement in the Cypriot banking sector's asset quality as of 31 October 2025, with the non-performing loan ratio decreasing to 4.2% and the MEX ratio falling to 2.1%. The coverage ratio for non-performing exposures increased to 70.7%, and total restructured loans stood at EUR 1.1 billion.