The Central Bank of Cyprus published updated aggregate data on non-performing loans for the Cyprus banking sector with a reference date of 31 July 2025, showing a further marginal improvement in asset quality metrics. At end-July 2025, the sector’s non-performing loans (NPLs) ratio declined to 5.5% from 5.6% at end-June 2025, mainly reflecting repayments, positive movements in the performing categories and write-offs. The coverage ratio of NPEs with bad provisions increased to 62.2% from 62.0% over the same period. Total loans that received restructuring amounted to EUR 1.2 billion, of which EUR 0.6 billion remained classified within NPEs.
Central Bank of Cyprus 2025-10-16
Central Bank of Cyprus updates banking sector NPL data showing ratio falls to 5.5% at end-July 2025
The Central Bank of Cyprus reported a slight improvement in asset quality metrics for the banking sector as of 31 July 2025, with the non-performing loans (NPLs) ratio decreasing to 5.5% from 5.6% in June. The coverage ratio of non-performing exposures (NPEs) with bad provisions rose to 62.2%. Restructured loans totaled EUR 1.2 billion, with EUR 0.6 billion still classified as NPEs.