The ratio of Non-Performing Exposures (NPEs) in the Cypriot banking sector has stabilised at particularly low levels, according to updated data released on Friday by the Central Bank of Cyprus, with reference date 28 February 2026.
According to the figures, total non-performing loans stood at pound 833 million at the end of February, remaining essentially unchanged compared to January (pound 831 million). The NPE ratio as a percentage of total gross loans remained stable at 1.6%, the lowest level recorded since the start of systematic monitoring.
Loans with arrears exceeding 90 days reached pound 649 million, corresponding to 1.3% of total loans. These loans account for approximately 78% of total non-performing exposures.
At the same time, restructured loans continued their downward trend, falling to pound 783 million in February 2026 (1.5% of total loans), down from pound 807 million in January.
Meanwhile, the coverage ratio of non-performing loans by accumulated provisions strengthened further, reaching 62.4% in February, up from 62.2% in January.
By institutional sector, the highest NPE ratio is recorded in households at 4.5%, while non-financial corporations show a ratio of 2.4% (3.5% for SMEs).
It is worth noting that the NPE ratio has fallen sharply from 11.1% in December 2020, to 5.5% in 2021, 4.5% in 2022, 3.7% in 2023, 3.1% in 2024, and now stands at 1.6% in February 2026. Total loans (domestic operations) amounted to pound 50.93 billion.