Non-performing loans (NPLs) in the banking system remained largely unchanged in May, totaling €1.77 billion compared to €1.80 billion the previous month. The NPL ratio relative to total loans remained stable at 7.4%.

Compared to the end of December 2023, NPLs decreased by only €81 million.

According to the Central Bank of Cyprus (CBC), loans with arrears exceeding 90 days also remained unchanged at €1.39 billion, representing 5.8% of total loans.

The NPL coverage ratio increased marginally to 54.4% from 54.2% the previous month, with accumulated provisions for NPLs amounting to €786 million.

Total restructured loans decreased in May to €1.42 billion from €1.44 billion the previous month. Restructured loans classified as non-performing under the European Banking Authority guidelines totaled €0.79 billion, a decrease of €4 million compared to April.

Household NPLs remained unchanged at €971 million in May, accounting for 54% of total NPLs. Meanwhile, business NPLs rose to €760 million from €695 million the previous month, with €695 million of this amount attributed to small and medium-sized enterprises.

Household loans with arrears exceeding 90 days increased slightly to €824 million in May from €822 million the previous month. In contrast, non-performing loans for businesses fell slightly to €536 million from €538 million in April.

The coverage ratio for business NPLs was 69%, while the ratio for small and medium-sized enterprise NPLs was 70%. The coverage ratio for household NPLs stood at 42%.