Non- performing exposures (NPEs) in the Cypriot banking system declined below €22 billion in February representing 45.3% of total loans, according to data released today by the Central Bank of Cyprus (CBC).
In January 2018, NPEs spiked by almost €2 billion compared with December 2017, due to the impact of the International Financial Reporting Standard 9 which forces banks to recognize expected losses.
Owing to the IFRS 9, accumulated provisions for credit losses reached a new high since 2014, amounting to €11.84 billion which corresponds to a coverage ratio of 54% of total NPEs, the CBC added.
In absolute terms, NPES declined in February by €0.12 billion or 0,55% to €21.9 billion compared with €22.11 in January.
Total loans in February registered an increase of €99 million amounting to €48.5 billion.
Restructured facilities declined to €12.02 billion in February marking an increase of €61 million compared with the previous month
Restructured facilities that continue to be classified as non-performing increased by €11 million amounting to €8.87 billion in February.
In February, Household NPEs accounted for 52% of total NPEs amounting to €11.36 billion while corporate non-performing loans accounted for 46% of total NPEs amounting to €10.15 billion of 46% of total NPEs, the CBC said.