Nicosia, Cyprus. The Cypriot banking sector recorded a further improvement in non-performing loans, according to Central Bank of Cyprus data with a reference date of November 30, 2025. The CBC report covered aggregate non-performing loan indicators for the entire Cyprus banking sector.
Non-performing loans ratios
As of the end of November 2025, the non-performing loans (NPL) ratio excluding central banks and credit institutions declined to 4.0 per cent, compared with 4.2 per cent at the end of October 2025. This measure reflects loans and advances excluding exposures to central banks and credit institutions across the banking system.
Using the methodology applied in the European Banking Authority Risk Dashboard, which includes loans and advances to central banks and credit institutions, the NPL ratio remained unchanged month-on-month. Under this broader definition, the NPL ratio stood at 2.1 per cent at the end of November 2025, the same level recorded at the end of October 2025.
Coverage ratio and restructured loans
The data showed a slight easing in the coverage ratio of non-performing loans with provisions. At the end of November 2025, the coverage ratio declined to 70.4 per cent, compared with 70.7 per cent at the end of October 2025.
The total balance of restructured loans across the Cyprus banking sector amounted to €1.10 billion at the end of November 2025. Out of this total, €0.50 billion in restructured loans continued to be classified as non-performing.
What do you think the unchanged EBA-based NPL ratio indicates about overall risk in the banking sector?