Nicosia: The Non-Performing Loans (NPL) ratio dropped to 2.8% by the end of August 2025, a slight decrease from 2.9% recorded at the end of July 2025. This information comes from the updated aggregate data utilizing the European Banking Authority (EBA) methodology, as published by the Central Bank of Cyprus (CBC).
According to Cyprus News Agency, the NPL ratio within the banking sector, which excludes loans and advances to Central Banks and Credit Institutions, remained stable at 5.5% by the end of August 2025. This stability indicates a continued effort in managing non-performing assets effectively.
The data further reveals that total NPLs saw a reduction by the end of August 2025, decreasing by pound 14 million to reach pound 1.42 billion, compared to pound 1.43 billion in July 2025. Of this, corporate NPLs stood at pound 608 million, while household NPLs were pound 785 million.
Additionally, the coverage ratio of NPLs with provisions rose to 62.6% by the end of August 2025, up from 62.2% at the end of July 2025. Total restructured loans amounted to pound 1.2 billion at the end of August 2025, with loans of pound 0.6 billion still classified as NPLs.