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Banking Sector Sees Little Change In Non-Performing Exposures For May

by THEFUTURE.TEAM

July 24, 2024

Non-performing exposures (NPEs) in Cyprus’ banking system remained stable in May 2024, totalling €1.77 billion, a slight decrease from €1.80 billion in April. The NPE ratio stood at 7.4% of total loans. Year-to-date, there has been a modest reduction of €81 million in NPEs.

The Central Bank of Cyprus (CBC) reported that loans overdue by over 90 days were constant at €1.39 billion, comprising 5.8% of total loans. The NPE coverage ratio saw a slight increase to 54.4% from 54.2% in April, with accumulated provisions reaching €786 million.

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Restructured facilities in May amounted to €1.42 billion, a marginal decrease from €1.44 billion the previous month. Of these, €0.79 billion were classified as non-performing under the European Banking Authority standards, a slight drop of €4 million from April.

Households held 54% of total NPEs, equivalent to €971 million, while corporations accounted for €760 million, with small and medium-sized enterprises (SMEs) holding €695 million of this amount. Corporate NPEs had a coverage ratio of 69%, compared to 42% for household NPEs.

The CBC’s data underscores the stability of Cyprus’ banking sector despite minor fluctuations. For business professionals and investors, understanding these metrics is crucial for assessing the health and risk factors within the banking system. The consistent levels of NPEs suggest that while there is resilience, ongoing vigilance and strategic management are necessary to maintain financial stability.

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Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

by THEFUTURE.TEAM

September 16, 2025

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.