Cyprus banking sector performance and liquidity data for early 2026

The Central Bank of Cyprus reported a 23.6 percent decline in banking sector profitability for the first quarter of 2026, falling to 202 million euros from 264 million euros in the same period of 2025. This decrease was primarily attributed to lower net interest income and foreign exchange losses. Total banking sector assets grew by 0.4 percent during the quarter, reaching 70.23 billion euros by March 31, 2026. The Common Equity Tier 1 ratio decreased to 25.1 percent from 25.8 percent in December 2025 due to an increase in total risk exposure. Meanwhile, the non-performing loan ratio remained stable at 1.6 percent, with total non-performing loans recorded at 835 million euros. The coverage ratio for these bad debts improved slightly to 62.7 percent. Additionally, separate data indicated that excess liquidity in the system dropped to 17.4 billion euros by the end of 2025, compared to 18.4 billion euros the previous year.