Cyprus banks’ NPL ratio drops to 1.5 per cent in July 2026
Central Bank of Cyprus figures show a lower non-performing loan ratio in July, while provision coverage slipped and restructured loans totalled €700 million.
Nicosia, Cyprus. Non-performing loans accounted for 1.5 per cent of Cyprus’ banking sector loans at July’s close in 2026, compared with 1.6 per cent in June, according to revised data released on Monday by the Central Bank of Cyprus (CBC).
Coverage and restructured lending
The CBC data, dated July 31, showed that the NPL ratio declined even as provisions covered a slightly smaller share of those loans. Coverage reached 64.5 per cent at July’s close, against 64.9 per cent at June’s close.
Restructured lending totalled €700 million at the end of July, the CBC reported. Within that total, €300 million remained classified as non-performing.
Calculation methodology
The CBC said its figures follow the methodology used for the European Banking Authority’s (EBA) risk dashboard. Under that approach, the calculation of the sector’s NPL ratio incorporates loans and advances made to central banks and to credit institutions.
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