Banking sector reports loan growth and nearly €1b deposit surge

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Cyprus recorded a strong increase in banking activity in December 2024, as loan demand rebounded with a net increase of €503.2 million, while total deposits increased by €977.4 million, according to the latest Monetary and Financial Statistics from the Central Bank of Cyprus (CBC).

On the lending front, total loans recorded a net increase of €503.2 million in December, reversing the slight decline of €1.8 million in November. The annual growth rate of total loans accelerated to 2.8%, compared to 1.9% in the previous month, with outstanding loans reaching €25.4 billion.

Loans to Cyprus residents increased by €150.7 million. Household borrowing rose by €111.3 million, while loans to non-financial corporations increased by €111.4 million. Other domestic sectors experienced a decline in loan uptake, with a total decrease of €72.0 million.

Total deposits also increased by €977.4 million in December, a significant rise compared to the €91.6 million increase recorded in November. The CBC pointed out that the seasonal factors contributed to the stronger deposit inflow. The annual growth rate of total deposits rose to 6.6%, up from 5.4% in the previous month, bringing the total deposit volume to €55.9 billion by year-end.

Deposits from Cyprus residents increased by €877.2 million. Household deposits accounted for most of this rise, climbing by €594.5 million. However, deposits from non-financial corporations declined by €135.3 million. Other domestic sectors contributed an additional €418.0 million in deposits.

Also read: Official Governance Agenda 2025: Key reforms and policies

Source: CNA

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