Non-performing loans decline slightly below Euros 22 billion in February

Non- performing exposures (NPEs) in the Cypriot banking system declined below Euros 22 billion in February representing 45.3% of total loans, according to data released today by the Central Bank of Cyprus (CBC).

In January 2018, NPEs spiked by almost Euros 2 billion compared with December 2017, due to the impact of the International Financial Reporting Standard 9 which forces banks to recognize expected losses.

Owing to the IFRS 9, accumulated provisions for credit losses reached a new high since 2014, amounting to Euros 11.84 billion which corresponds to a coverage ratio of 54% of total NPEs, the CBC added.

In absolute terms, NPES declined in February by Euros 0.12 billion or 0,55% to Euros 21.9 billion compared with Euros 22.11 in January.

Total loans in February registered an increase of Euros 99 million amounting to Euros 48.5 billion.

Restructured facilities declined to Euros 12.02 billion in February marking an increase of Euros 61 million compared with the previous month

Restructured facilities that continue to be classified as non-performing increased by Euros 11 million amounting to Euros 8.87 billion in February.

In February, Household NPEs accounted for 52% of total NPEs amounting to Euros 11.36 billion while corporate non-performing loans accounted for 46% of total NPEs amounting to Euros 10.15 billion of 46% of total NPEs, the CBC said.

Source: Cyprus News Agency