Insider Business ΝPLs in Cyprus decline by €3 billion due to Bank of Cyprus...

ΝPLs in Cyprus decline by €3 billion due to Bank of Cyprus NPL sale

Cyprus has registered one of the largest quarterly non-performing loan declines in the EU in the second quarter of 2018, mainly due to Bank of Cyprus’ sale of NPLs amounting to €2.8 billion.

According to the European Banking Authority’s (EBA) risk dashboard for the second quarter of 2018 NPLs declined to €13.2 billion from €16.3 billion in the previous quarter marking a decline of 19%. The quarterly reduction is the third largest in the EU but the highest among the banking systems with high NPL rates.

Despite the quarterly reduction, NPL rate in Cyprus remains the second highest in the EU amounting to 34.1% of total loans from 39% in the first quarter, following Greece with 44.8%.

The average NPL rate in the EU stood at 3.6% which in absolute terms corresponds at €731 billion, the EBA said.

Cyprus coverage ratio amounted to 44.2% compared with the EU average of 46%.

According to EBA Cyprus posted one of the lower capital ratios in the EU with common equity tier 1 capital (CET1) amounting to 13.6% just before Portugal, Italy and Spain. CET1 ratio follows a downward trend since December 2017 reflecting the increase in provisions against bad loans, and negative impact from the banks’ efforts to wind down NPLs.

Cyprus ranks second from the bottom in terms on return on assets ratio with just 0.1% compared with the EU average of 0.5% Greece is last as the country’s banking system registered negative return on assets, according to the EBA.
(Cyprus News Agency)

Top Stories

Triple digit covid cases for a 3rd day running but going down-101 today One in 18 positive

  One hundred and oney new Covid-19 cases were announced today, out of 2 thousand 781 tests, taking the total number of confirmed patients to...

Sudan says it will discuss trade, migration deals with Israel

  Sudan and Israel will discuss agreements to cooperate on trade and migration issues in the coming weeks, the Sudanese foreign ministry said, signaling steps...

‘Macron a nutcase who’s lost his way’, Erdogan says in new insulting tirade

  Turkish President Tayyip Erdogan said Emmanuel Macron had “lost his way”, in his second sharp criticism of the French leader in two days over...

Armenian community in Cyprus holds Karabakh protest

  The Armenian community in Cyprus held an all-day protest today, condemning the Azeri attack on Nagorno Karabakh. The march went through various areas of Nicosia,...

Spain decrees new state of emergency in COVID-19 fight

  Spanish Prime Minister Pedro Sanchez announced a new state of emergency in an effort to curb soaring coronavirus infections, imposing local nighttime curfews and...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...