THE EUROPEAN Banking Authority’s (EBA) risk dashboard for the first quarter of 2019 shows that NPLs (90 days past due definition) in Cyprus’ three systemic banks amounted to 34.1% compared with the EU average of just 3.1% of total loans.
In absolute terms, bad loans amounted to €6.9 billion. Greece holds the top spot with an NPL ratio of 41.4% or €84.3 billion. Portugal posted the third highest NPL rate with just 9.57% and Italy the fourth highest with 8.25%.
However, the EBA noted that NPLs continued their declining trend albeit at a slower pace in the first quarter of the year.
Cyprus NPL coverage ratio was however slightly above the EU average with 45.9% compared with 45.1%.
Cyprus banking system capital ratios were below the EU average in Q1 2019. The CET1 capital ratio for the Cypriot banks amounted to 13.7%, compared with the EU average of 14.7%, while total capital ratio reached 17.4% compared with the EU average of 18.9%.
Cyprus’ ratio of Net Interest Income (NII) amounted to 2.16% compared with the EU average of 1.41%, while the Cypriot banks return on equity climbed to 13.6% compared with the EU average of 6.8%.
Furthermore, Cyprus posted the fifth highest NII to total operating income indicator which in Q1 amounted to 72.4% compared to the EU average of 59%.
According to EBA data, Cyprus posted the fifth highest cost-to-income ratio which amounted to 70.8% compared with the EU average of just 6.63%.
Cyprus’ loan to deposit ratio amounted to 60.1% compared with the EU average of 116%.
Moreover, Cyprus continues to post high liquidity ratios, recording the third highest Liquidity Coverage Ratio (LCR) with 326% compared with the EU average of 153%.
