Cyprus banking sector non-performing loans dipped marginally to €830 million in April 2026. While the overall NPL ratio held steady at 1.6%, households and small businesses continue to face the highest rates of financial distress.

Headline Figures and Stability

Total non-performing loans (NPLs) in Cyprus' banking sector stood at €830 million at the end of April 2026, recording a marginal decline from €835 million in March, according to aggregate data published on Thursday by the Central Bank of Cyprus (CBC). The NPL ratio remained unchanged at 1.6% of total loans.

Total loans amounted to €51.04 billion, compared with €51.35 billion in March. Loans with arrears of more than 90 days declined marginally to €633 million from €634 million, remaining at 1.2% of total lending.

Compared with the end of 2025, total NPLs decreased by €9 million from €839 million.

Restructuring and Provisions

Restructured loans amounted to €752 million, down from €777 million in March and €824 million at the end of 2025. Of these, €319 million continue to be classified as non-performing.

Total accumulated provisions stood at €650 million, compared with €659 million a month earlier, of which €522 million related to non-performing loans. As a result, the NPL coverage ratio improved marginally to 62.9%, from 62.7% in March and 62.1% at the end of 2025.

Household Vulnerabilities: Households Record Highest NPL Ratio

According to the breakdown by institutional sector, households continued to record the highest ratio of non-performing loans.

Household lending amounted to €10.74 billion, of which €473 million were classified as non-performing, corresponding to an NPL ratio of 4.4%. Loans overdue by more than 90 days totalled €377 million, while provisions for household NPLs reached €260 million, resulting in a coverage ratio of 55%.

Corporate and SME Breakdown

For non-financial corporations, total lending stood at €13.66 billion, with NPLs amounting to €326 million, corresponding to an NPL ratio of 2.4%. Provisions for NPLs totalled €232 million, translating into a coverage ratio of 71.2%.

Small and medium-sized enterprises (SMEs) continued to record a higher-than-average NPL ratio. NPLs in the sector amounted to €303 million out of total loans of €8.47 billion, corresponding to an NPL ratio of 3.6%. The coverage ratio for SME NPLs stood at 71.7%.

Source: CNA(ΚΥΠΕ)