Cyprus banking sector’s non-performing loan ratio unchanged at 1.6% in June

Nicosia, Cyprus. Cyprus’s banking sector non-performing loan ratio remained unchanged at 1.6 per cent at the end of June 2026, according to updated data published by the Central Bank of Cyprus on Thursday. The ratio was unchanged from the end of March.

Loan performance data

The aggregate data cover non-performing loans as of June 30, 2026.

The ratio is calculated using the methodology applied in the European Banking Authority’s risk dashboard, including loans and advances to central banks and credit institutions.

Provision coverage rises

While the non-performing loan ratio remained stable, the coverage of non-performing loans by provisions increased during the second quarter.

The coverage ratio rose to 64.9 per cent at the end of June from 62.7 per cent at the end of March, meaning provisions covered a larger proportion of the banking sector’s non-performing loans than three months earlier.

Restructured loans

The total value of restructured loans stood at €0.70 billion at the end of June, the Central Bank of Cyprus said.

Of that amount, €300 million continued to be classified as non-performing loans.