The volume of non-performing loans (NPLs) in the Cypriot banking sector continued to decline at the end of July, according to data released on Thursday by the Central Bank of Cyprus (CBC).
Based on the updated figures for NPLs as of 31 July 2025, the ratio of non-performing loans to total loans fell to 5.5%, down from 5.6% at the end of June and 6.2% at the end of 2024.
The total stock of NPLs decreased slightly to pound 1.44 billion, compared with pound 1.46 billion a month earlier. At the same time, total loans rose marginally to pound 26.0 billion, from pound 25.8 billion in June, contributing to the improvement in the overall NPL ratio.
Loans in arrears of more than 90 days remained broadly stable at pound 1.15 billion, representing 4.4% of total loans.
Banks’ accumulated provisions amounted to pound 982 million, of which pound 895 million relate to non-performing loans. The coverage ratio of NPLs by provisions edged up to 62.2%, compared with 62.0% in June and 59.9% at the end of 2024.
The largest share of NPLs continues to be concentrated among households and small and medium-sized enterprises (SMEs). Specifically, households recorded an NPL ratio of 7.4%, corresponding to pound 794 million out of total loans of pound 10.76 billion. Non-financial corporations showed pound 613 million in NPLs, representing 4.7% of their total loans, while among SMEs the ratio stood higher, at 7.1%.
As regards restructured loans, the total fell to pound 1.21 billion in July from pound 1.23 billion in June. Around pound 640 million of these continue to be classified as non-performing.