Cyprus banks’ non-performing loan ratio edges down in July

Cyprus’ banking sector non-performing loan (NPL) ratio fell to 1.5 per cent at the end of July 2026, down from 1.6 per cent a month earlier, according to updated figures published by the Central Bank of Cyprus (CBC) on Monday. The data, which refer to July 31, show that the proportion of non-performing loans declined despite a slight reduction in the sector’s coverage of these loans through provisions. The NPL coverage ratio fell to 64.5 per cent at the end of July, compared with 64.9 per cent at the end of June. The CBC’s figures use the methodology applied in the European Banking Authority’s (EBA) risk dashboard, which includes loans and advances to central banks and credit institutions in the calculation of the banking sector’s NPL ratio. Meanwhile, total restructured loans stood at €700 million at the end of July. Of this amount, €300 million continued to be classified as non-performing loans, the CBC said.