Cyprus banks keep NPL ratio at 1.6% in February 2026, lowest since monitoring began

Cyprus’ banking sector held its non-performing loans ratio at 1.6 percent in February 2026, matching the lowest level recorded since systematic monitoring began, according to data published Friday by the Central Bank of Cyprus. Total non-performing exposures stood at €833 million at the end of February, compared with €831 million in January, remaining broadly unchanged month on month.

Loans overdue by more than 90 days amounted to €649 million, equal to 1.3 percent of total loans, and accounted for approximately 78 percent of all non-performing exposures, the central bank said. Restructured loans continued to decline, falling to €783 million in February from €807 million in January.

Restructured facilities corresponded to 1.5 percent of total loans. The coverage ratio of non-performing loans through accumulated provisions edged up to 62.4 percent in February from 62.2 percent in January. By borrower category, households continued to post the highest level of non-performing loans, with a ratio of 4.5 percent.

Among non-financial corporations, the ratio stood at 2.4 percent, while for small and medium-sized enterprises it reached 3.5 percent. The figures underscore a steady improvement over recent years. The non-performing loans ratio fell from 11.1 percent in December 2020 to 5.5 percent in 2021, then to 4.5 percent in 2022, 3.7 percent in 2023 and 3.1 percent in 2024, before reaching 1.6 percent in February 2026.

Total domestic loans in the Cypriot banking sector amounted to €50.93 billion, according to the central bank.