Cyprus closed out 2024 with a surge in banking activity, as both loan demand and deposits recorded significant increases, according to the latest Monetary and Financial Statistics from the Central Bank of Cyprus (CBC).
Loan Growth Accelerates
Total loans saw a net increase of €503.2 million in December, reversing a slight €1.8 million decline from the previous month. The annual growth rate of total loans accelerated to 2.8%, up from 1.9% in November, bringing outstanding loans to €25.4 billion.
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- Loans to Cyprus residents rose by €150.7 million.
- Household borrowing increased by €111.3 million.
- Loans to non-financial corporations also climbed by €111.4 million.
- Other domestic sectors experienced a net decline of €72.0 million in loan uptake.
Deposits See Strongest Monthly Gain Of The Year
December also saw a significant rise in total deposits, with a net increase of €977.4 million, far exceeding November’s €91.6 million gain. The annual deposit growth rate climbed to 6.6%, up from 5.4% in November, pushing total deposit volume to €55.9 billion by year-end.
- Deposits from Cyprus residents grew by €877.2 million.
- Household deposits led the increase, rising €594.5 million.
- Deposits from non-financial corporations declined by €135.3 million.
- Other domestic sectors contributed an additional €418.0 million in deposits.
Seasonal Trends And Economic Resilience
The CBC attributed the strong deposit inflow in December to seasonal factors, highlighting the resilience of the Cypriot banking sector as loan activity picked up after a slower period. With rising deposit levels and increasing borrowing demand, Cyprus enters 2025 with a strengthened financial system, positioning its banks for continued growth and stability.
