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NPL ratio drops in Q1 as provisions rise in banking sector

14:10 - 16 July 2025

Financial Services

The level of non-performing loans (NPLs) in the Cypriot banking sector edged down slightly in the first quarter of 2025, while coverage with provisions improved, according to updated aggregate data released by the Central Bank of Cyprus.

The figures, with reference date 31 March 2025, show continued progress in balance sheet quality, despite a still sizeable stock of restructured loans under stress.

At the end of March 2025, the NPL ratio of the banking sector decreased marginally to 6.1% from 6.2% the end of December 2024, mainly due to repayments, positive migrations into the performing categories, write-offs and currency fluctuations.

Τhe coverage ratio of NPLs with provisions increased to 60.5% at the end of March 2025 compared with 59.9% at the end of December 2024.

Total restructured loans at the end of March 2025 amounted to €1.3 bn, out of which loans of €0.7 bn continue to be classified as NPLs.

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