Cyprus banking sector non-performing loan ratio falls to 1.5 percent in July 2026

The Central Bank of Cyprus released updated banking sector data for July 2026, showing that the non-performing loan (NPL) ratio declined to 1.5 percent, down from 1.6 percent in June 2026. The total volume of non-performing loans dropped to €806 million from €821 million in the previous month and €839 million at the end of 2025. This calculation follows the European Banking Authority's risk dashboard methodology, incorporating loans and advances to central banks and credit institutions.

Simultaneously, the NPL coverage ratio by impairment provisions decreased to 64.5 percent in July, compared to 64.9 percent in June. Total restructured loans reached €707 million, with €300 million of that amount still classified as non-performing. The reported figures encompass all credit institutions operating in Cyprus on a consolidated basis, specifically for their domestic operations. Total loans within the sector rose to €52.847 billion during the same period, indicating a broader expansion of banking activities alongside the reduction in bad debt.

These statistics reflect the ongoing efforts of the Cypriot banking sector to improve asset quality. The reduction in the NPL ratio, despite a slight dip in coverage provisions, suggests a continued trend toward normalization within the domestic financial system.