NPLs rise by 0.4% in the first quarter of 2021

Non-performing exposures (NPEs) in the Cyprus banking system rose by €19 million or 0.4% in end of March 2021 compared with the end of December 2020, according to data released by the Central Bank of Cyprus.

NPEs, which include restructured loans which remain classified as NPEs for at least one year under the EBA directive, in end March 2021 amounted to €5,130 million compared with €5,111 million in end-December.

“The slight increase in NPEs is mainly due to NPE inflow and interest charges,” the CBC said.

Total loans in the end of March declined to €28,633 from €28,882 the CBC added.

Compared with February 2021, NPEs declined by €15 million, mainly owing to restructured loans that have been classified as performing.

However net non-performing loans, that is, loans in arrears more than 90 days which do no include restructured facilities, rose by €66 million compared with the previous month, amounting to €4 billion.

NPEs as a percentage of total loans in the end of March 2021 amounted to 17.7% compared with 17.9% in the end of 2020, while the coverage ratio amounted to 47.1% in the end of March 2021 compared with 45.9% in the end of December 2020, the CBC added.

Restructured facilities in the end of March amounted to €3,529 million of which €2,221 are still classified as non-performing under the EBA directives.