Non-performing loans decreased to 9.5% of total loans at the end of 2022, according to data released on Friday by the Central Bank of Cyprus (CBC). At the end of 2021, NPLs stood at 11% of the total loans.
At the end of 2022 total loans amounted to pound 24.4 billion, down from pound 27 billion at the end of 2021. Of these, pound 2.3 billion were non-performing, showing a decrease from the pound 2.9 billion outstanding as NPEs at end of 2021. In addition, loans amounting to pound 2.7 billion were restructured, constituting 11.2% of total loans, of which pound 1.01 billion remain non-performing.
According to CBC’s data, the total accumulated impairment provisions for all credit institutions amounted to pound 1.2 billion, with pound 1.1. billion relating to NPEs.
The coverage ratio on NPLs stood at 47,5% at the end of December 2022 compared with 42,7% at the end of 2021.
Of the total loans of pound 24.4 billion, pound 10.6 billion are loans to households and pound 12.05 billion loans to non-financial companies, of which pound 8.6 billion concern small and medium enterprises. The NPL rate for households stood at 12.1% and for non-financial companies at 8%, while for small and medium enterprises at 9.7%.
Compared to the previous quarter, which ended at the end of September 2022, there was a decrease of pound 423 million or 15.5% in total NPLs. In addition, total loans decreased by 5.7% from pound 25.8 billion at the end of September 2022, while the NPLs ratio to total loans decreased from 10.6% at the end of September 2022 to 9.5% at the end of December 2022.
The continuous downward trend in NPLs is attributed, by order of significance, to loan repayments, to positive migrations of loans which have been successfully restructured and reclassified as performing at the end of the probation period and to loan write-offs.
Source: Cyprus News Agency