In August 2024, the steady reduction of Non-Performing Loans (NPLs) in the Cypriot banking system continued, showing a further decrease of €15 million, reaching €1.63 billion (from €1.65 billion in July), according to data released on Tuesday by the Central Bank of Cyprus (CBC).

Total loans amounted to €24.05 billion at the end of August 2024, compared to €24.13 billion in July of the same year, while the NPL ratio, relative to total loans, remained at 6.8%, unchanged from the previous month.

According to the CBC’s data, which follows the definition adopted by the European Banking Authority, total loans with a delay of over 90 days stood at €1.29 billion in August 2024, or 5.4% of total loans, a percentage that remained unchanged compared to the previous month.

The NPL coverage ratio (total accumulated provisions against total NPLs) stood at 55.3% (€990 million) at the end of August, compared to 55.2% at the end of July 2024.

Meanwhile, total restructured loans amounted to €1.36 billion, compared to €1.32 billion in July 2024, of which €713 million continue to be classified as NPLs.

NPLs in the household sector stood at €916 million in August 2024, accounting for 8.7% of total loans, with total accumulated provisions for household NPLs reaching 40.6% of total loans (€393 million).

Total household loans amounted to €10.53 billion.

Corporate NPLs reached €682 million in August 2024, or 5.7% of total loans, of which €606 million concern NPLs of small and medium-sized enterprises (SMEs). Total accumulated provisions for corporate NPLs stood at 73.5%.

Corporate loans amounted to €11.98 billion at the end of August 2024.