Cyprus banks strengthen asset quality as non-performing loans fall further

The Central Bank of Cyprus (CBC) on Friday reported that the Cypriot banking sector’s non-performing loan ratio continued to fall, reflecting ongoing balance sheet repair and improved asset quality.

As of the end of October 2025, the non-performing loans ratio excluding loans and advances to central banks and credit institutions declined to 4.2 per cent, compared with 4.5 per cent at the end of September 2025.

This decline pointed to a month-on-month improvement in credit quality...