Cyprus Sees Rise in Non-Performing Exposures, Reaching €1.61 Billion in October

Non-performing exposures (NPEs) in Cyprus increased by approximately €16 million in October 2024, bringing the total to €1.61 billion, according to a report published by the Central Bank of Cyprus (CBC).

The CBC stated that this figure now represents 6.6 percent of total loans, marking a slight increase from 6.5 percent recorded in September.

The coverage ratio for NPEs, which measures the total accumulated provisions against outstanding non-performing loans, saw an uptick to 56.1 percent (€993 million) in October, compared to 55.7 percent (€978 million) a month prior. Of these provisions, €905 million are allocated specifically to NPEs.

Data from the CBC also revealed that loans in arrears for over 90 days stood at €1.27 billion in October, accounting for 5.2 percent of total loans.

Meanwhile, the total volume of loans within Cyprus' banking system saw a decline, dropping to €24.35 billion at the end of October from €24.41 billion in September. Additionally, restructured loans amounted to €1.33 billion, with €711 million of these still classified as NPEs.

The report also provided a breakdown of NPEs among households and businesses. Household NPEs reached €898 million in October, representing 8.5 percent of total household loans, which stood at €10.60 billion. Provisions for household NPEs covered 41.2 percent of total household loans.

For businesses, NPEs amounted to €676 million, equating to 5.8 percent of corporate loans. Of this, €627 million was linked to small and medium-sized enterprises (SMEs).

The coverage ratio for corporate NPEs stood at 74.3 percent.

As for the overall corporate loan portfolio, total corporate loans at the end of October stood at €11.75 billion, with €7.88 billion allocated to SMEs.

By fLEXI tEAM