Nicosia, Cyprus. The Central Bank of Cyprus said the Cypriot banking sector’s non-performing loan ratio continued to decline as of the end of October 2025. The central bank also reported higher provisioning coverage and €1.1 billion in restructured loans.
Non-performing loan ratios
The Central Bank of Cyprus reported that, as of the end of October 2025, the non-performing loans ratio excluding loans and advances to central banks and credit institutions declined to 4.2 per cent, compared with 4.5 per cent at the end of September 2025.
Under the European Banking Authority Risk Dashboard methodology, which includes loans and advances to central banks and credit institutions, the non-performing loans ratio fell to 2.1 per cent at the end of October 2025, compared with 2.3 per cent at the end of September 2025.
Provisioning coverage
The central bank said provisioning levels strengthened, with the coverage ratio of non-performing loans rising to 70.7 per cent at the end of October 2025, from 68.5 per cent a month earlier.
Restructured loans
The Central Bank of Cyprus reported that total restructured loans stood at €1.1 billion at the end of October 2025. It said €0.5 billion of these loans remained classified as non-performing.
Euro area context
The central bank said the Cyprus figures align with broader improvements in asset quality across the euro area, as reflected in European Central Bank data.
What do the latest Central Bank of Cyprus figures indicate about trends in non-performing loans and provisioning coverage?
