Cyprus bank asset quality outperforms EU average as NPL ratio holds steady

Cyprus banks’ non-performing loan ratio remained at 1.6 per cent at the end of May 2026, according to the Central Bank of Cyprus (CBC), leaving the sector’s asset quality significantly better than the EU-wide average recorded two months earlier.

The CBC reported that its updated aggregate banking sector data showed the NPL ratio was unchanged from the end of April, while the proportion of bad loans covered by provisions edged higher....