Non-Performing Loans (NPLS) in the Cyprus banking system rose marginally in the first month of 2024, with the NPL rate over total loans remaining unchanged at 7.9%.

According to data released by the Central Bank of Cyprus, total NPLs (based on the EBA directive) in January amounted to €1.9 billion marking an increase of €7 million compared to December 2023 whereas the balance of loans in arrears over 90 days stood at €1,58 billion, marking an increase of €11 million. The 90 DPD rate to total loans remained unchanged to 6.2%.

Compared with January 2023, NPLs declined by €0,42 billion, whereas loans in arrears over 90 days marked a reduction of €0.36 billion. Total loans in January in the banking system in January amounted to €24.02 billion compared with €24.07 billion in December 2023.

Furthermore, the ratio of accumulated provisions covering NPLs stood at 50.1% over 49.5% in the previous month.

According to the CBC total restructured facilities amounted to €1.55 billion, of which €0.85 billion continued to be classified as non-performing under the EBA directive.

The small rise in NPLs in January is attributed to corporate delinquent loans, which amounted to €0.78 billion over €0.77 billion in the previous month, while Household NPLs remained unchanged at €1.07 billion.

The coverage ratio for corporate NPLs amounted to 66.3% while provisions of household NPLs stood at 38%, the CBC said.