Cyprus banks maintain low 1.6% non-performing loan ratio with strong profitability above EU average
Cyprus banks recorded a stable non-performing loan (NPL) ratio of 1.6% at the end of May 2026, according to the Central Bank of Cyprus (CBC). This figure is significantly lower than the 1.98% average for the EU banking sector reported at the end of March. The sector's asset quality remains robust, supported by a slight increase in NPL coverage to 63%, indicating an improved buffer against potential loan losses.
The CBC data also highlight Cyprus's banking sector profitability, with return on equity standing at 3.7% in the first quarter of 2026, outperforming the EU average of 2.44%. Restructured loans totaled €800 million, with €300 million still classified as non-performing, showing limited legacy issues within the system.
Overall, Cyprus's banking sector demonstrates relatively contained asset-quality pressures alongside strong capital and profitability metrics compared to the wider European Union. These results point to a resilient domestic banking environment despite ongoing challenges facing the broader EU banking sector.
No news yet
CYPRadar is a state-of-the-art, AI-powered Cyprus news aggregator that automatically crawls, filters, and translates local updates in real time. By continuously scanning a wide range of trusted Cypriot media outlets, blogs, and official RSS feeds, the platform identifies original stories and uses advanced language models to filter out duplicate coverage. The service then generates concise, objective summaries, ensuring that readers get a quick and clear understanding of every significant event without information overload.
The primary mission of CYPRadar is to provide comprehensive, multi-language coverage of Cyprus news to keep both residents and international visitors well-informed. The platform covers key events across all major cities and districts, including Nicosia, Limassol, Larnaca, Paphos, and Famagusta. By offering all updates simultaneously in five languages — English, Russian, Greek, Ukrainian, and Turkish — CYPRadar bridges communication gaps and ensures that everyone has equal access to critical local information, from policy changes to community events.
Monitor economic trends, financial regulations, and business news in Cyprus. Follow corporate developments, banking sector updates, inflation reports, tax changes, investment growth, and real estate market performance.