Preliminary Group Financial Results for the year ended 2014
Non-Performing Loans definition
Non-Performing Loans (NPLs) as per the Central Bank of Cyprus Directive: In accordance with the directive, a loan is considered
as non-performing when it shows arrears of more than 90 days or if it has been restructured and at the time of restructuring presented
arrears for a period of more than 60 days, regardless of tangible or other collateral or it has been restructured more than 2 times in a
period of 18 months. More specifically a NPL is defined as a loan which has arrears (of interest or capital or any other charges) for a
period of more than 90 days, an overdraft in excess of its contractual limit on a continuous basis for a period of more than 90 days and a
restructured facility which at the time of restructuring was classified as NPL or has arrears/excesses for a period of more than 60 days, or
has been restructured more than 2 times in the last 18 months. Restructured loans remain as NPLs for 6 months following the
commencement of the new repayment schedule of capital installments or in the case of gradual increasing installments, six months from
the first month from which the higher installment is due. In case of lump-sum payments at maturity, the loan remains as NPL until its
maturity.
Non-Performing Exposures (NPEs) as per the EBA definition: The European Banking Authority (EBA) has published its reporting
standards on forbearance and non-performing exposures. In accordance with the EBA definition, the below exposures are considered as
non-performing if:
- (i) The debtor is assessed as unlikely to pay its credit obligations in full without the realisation of the collateral, regardless of the
existence of any past due amount or of the number of day past due or
- (ii) impaired exposures i.e. a) specific provision is kept, b) write off, c) legal, d) bankrupt, or
- (iii) material exposures which are more than 90 days past due or
- (iv) performing forborne exposures that re-restructured within 2 year probation period or
- (v) performing forborne exposures under probation (2 years) that present more than 30 days past due after the restructuring date.
-90+DPD: 90+ DPD are loans with a specific provision (i.e. impaired loans) and loans past-due for more than 90 days but not impaired
Bank of Cyprus
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