CYPRUS: NPLs coverage ‘above EU average’, says EBA

The coverage ratio of non-performing loans (NPLs) in the Cypriot banking system remains steadily above the EU average, according to figures for the third quarter of 2017 published by the European Banking Authority (EBA).

The data showed that the coverage ratio of NPLs in Cypriot banks stood at 45.54% and the country was in 13th place, when the European average was 44.7%. The index saw a marginal improvement over the second quarter, when it was 45.42%.

As regards the percentage of NPLs to total assets, Cyprus ranked second, after Greece, with 40.62%, compared to 42.7% in the second quarter. The EU average was 4.3%.

The total capital ratio stood at 15.15% compared to 15.29% in the second quarter. Cyprus was at the bottom of the list, leaving only Portugal behind.

Cypriot banks rank second in the EU as regards the level of forbearance, which stood at 24.85% compared to 25.83% in the second quarter.

CET1 liquidity remained stable at 13.49%, with Cyprus ranking 26th in the EU.

The cost to income ratio was also stable at 52.7%, with Cypriot banks ranking 15th in the EU. Impaired financial assets to total assets stood at 14.51%, a small improvement compared to 15.38% in the third quarter of 2017.