February 2025 saw a significant shift in Cyprus’ financial landscape, with loans and deposits both recording substantial net increases, according to the Central Bank of Cyprus’ latest Monetary and Financial Statistics report.
Loan Growth Rebounds After January Decline
Total loans rose by €42.7 million in February, marking a turnaround from the €45.6 million decline recorded in January 2025. Despite this increase, the annual loan growth rate slowed to 1.9%, compared to 3.2% in January. By the end of the month, total outstanding loans stood at €25.4 billion.
Breaking down the numbers, loans to Cyprus residents decreased by €4.9 million, with household loans shrinking by €8.8 million and non-financial corporate loans declining by €38.3 million. Meanwhile, loans issued to other domestic sectors saw a combined rise of €42.2 million.
Deposits Climb by Nearly Half a Billion Euros
Total deposits experienced a sharp increase of €498.3 million in February 2025, reversing January’s decline of €211.3 million. This surge was partly influenced by funds received by Hellenic Bank shareholders following the sale of shares to Eurobank S.A.
The annual deposit growth rate accelerated to 7.7%, up from 6.9% in January, pushing total deposits to €56.2 billion by the end of the month.
Deposits from Cyprus residents increased by €535.9 million, with household deposits rising by €237.6 million. However, non-financial corporations saw a decline of €186.2 million in deposits. Other domestic sectors contributed to an overall increase of €484.5 million.
Market Implications
The increase in loan issuance, coupled with a sharp rise in deposits, signals renewed financial activity in Cyprus. The banking sector’s stability, along with liquidity growth, could encourage further lending and investment opportunities in the months ahead.
Source: Stockwatch.com.cy