The Central Bank of Cyprus published updated aggregate non-performing loan data for the Cyprus banking sector with a reference date of 31 December 2025, showing a further decline in non-performing exposures and non-performing loans ratios. The Non-Performing Loans (NPLs) ratio, excluding loans and advances to Central Banks and Credit Institutions, fell to 3.2% from 4.5% at end-September 2025. The MEX ratio under the European Banking Authority (EBA) Risk Matrix methodology, which includes loans and advances to Central Banks and Credit Institutions, declined to 1.6% from 2.3%, and was below the EU average of 1.8% (September 2025) for the first time since the 2014 EU-level harmonisation of the NPE definition. The coverage ratio of NPEs with bad provisions decreased to 62.3% from 68.5%, while total restructured loans stood at EUR 0.8 billion, of which EUR 0.3 billion remained included in NPEs.
Central Bank of Cyprus 2026-02-18
Central Bank of Cyprus reports banking sector NPL ratio down to 3.2% and MEX ratio to 1.6% at end-December 2025
The Central Bank of Cyprus reported a decline in non-performing exposures and loans for the Cyprus banking sector as of 31 December 2025. The Non-Performing Loans (NPLs) ratio dropped to 3.2%, while the MEX ratio fell to 1.6%, below the EU average for the first time since 2014. The coverage ratio of non-performing exposures decreased to 62.3%, with total restructured loans at EUR 0.8 billion.