Nicosia: The Non-Performing Loans (NPL) ratio in the Cypriot banking sector held steady at 1.6% at the end of June 2026, reflecting no change from the previous quarter. This data was released by the Central Bank of Cyprus and pertains to the period ending June 30, 2026.

According to Cyprus News Agency, the NPL ratio remains stable based on the European Banking Authority's Risk Dashboard methodology, which includes loans and advances to central banks and credit institutions. Meanwhile, the NPL coverage ratio, which accounts for provisions for impairment, saw an increase, rising to 64.9% from 62.7% in March 2026. This indicates a strengthening in the sector's ability to cover potential losses from non-performing loans.

Additionally, the report highlighted that total restructured loans amounted to £0.7 billion at the end of June. Of these restructured loans, £0.3 billion continued to be classified as non-performing, underscoring ongoing challenges in the management of distressed assets within the banking sector.