Cyprus banks’ non-performing loan ratio steady at 1.6% in May
Cyprus banks’ non-performing loan ratio remained at 1.6 per cent in May 2026, while coverage of bad loans by provisions rose slightly.
Nicosia, Cyprus. Cyprus banks’ non-performing loan ratio remained unchanged at 1.6 per cent at the end of May 2026, according to updated aggregate data from the Central Bank of Cyprus.
The figure was lower than the European Union banking sector ratio of 1.98 per cent recorded at the end of March, according to European Central Bank data, although the reporting dates differ.
Loan coverage improves
The Central Bank of Cyprus said the non-performing loan ratio was unchanged from the end of April.
Banks’ coverage ratio for non-performing loans rose to 63.0 per cent at the end of May, from 62.9 per cent a month earlier. The measure reflects the share of non-performing loans covered by provisions against potential losses.
Restructured loans
Total restructured loans stood at €800 million at the end of May, of which €300 million continued to be classified as non-performing.
European comparison
The European Central Bank reported an EU-wide non-performing loan ratio of 1.98 per cent at the end of March. The ratio was 0.02 percentage points higher year on year.
Cyprus’ May ratio was 0.38 percentage points below the EU aggregate, though the figures relate to different reporting dates. The wider European banking sector continues to report relatively strong capitalisation, profitability and asset quality, despite differences between national banking systems.
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