NPEs decline marginally in June

Non-performing exposures (NPEs) declined slightly to €2.92 billion in June 2022, marking a reduction of just €34 million compared with the previous month, according to data released by the Central Bank of Cyprus (CBC) on Monday.

NPE ratio to total loans amounted to 11.2% in June from 11.4% the month, before.

Net Non-performing loans (excluding restructured facilities which remain classified as non-performing as per the EBA directive) dropped by €65 million to €2.05 billion in June.

According to the CBC data, total restructured facilities in June amounted to €3.27 billion to €3.30 billion the month before, of which €1.41 billion was classified as non-performing compared with €1.54 billion in May 2022.

Total accumulated provisions remained broadly unchanged to €1.48 billion in June 2022, of which €1.35 billion was earmarked for NPEs with the NPEs coverage ratio at 46.2%.

According to the CBC data corporate NPES declined in June to €1.16 billion from €1.19 billion in May, of which €0.89 billion concerned small and medium-sized enterprises compared with €0,93 the month before. Coverage ratio for corporate NPEs stood at 61% while the coverage ratio for SMEs amounted to 64%.

Household NPEs in June amounted to €1.43 billion from €1.47 the previous month, with bad debts provisions ratio at 33%, the CBC added.