Cyprus’ banking sector posted another month of steady expansion in August, with both deposits and loans recording net increases, according to figures released Friday by the Central Bank of Cyprus (CBC). Annual credit growth also gathered pace, underscoring resilient activity in the island’s financial system.
Deposits Rise To €59.3 Billion
Total deposits climbed by a net €171.5 million in August, bringing the stock of deposits to €59.3 billion. While the monthly increase was smaller than July’s €562.3 million rise, the annual growth rate edged higher to 6.5 per cent from 6.2 per cent a month earlier.
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Deposits held by Cyprus residents increased by €175.3 million, driven largely by a €60.2 million gain in non-financial corporate deposits. Household deposits slipped marginally by €1.9 million, while deposits held by other domestic sectors rose by a combined €117 million.
Lending Rebounds After July Decline
On the lending side, total loans rose by a net €114.6 million in August, reversing July’s net decline of €68.7 million. The outstanding loan balance reached €28.5 billion, while annual loan growth accelerated to 11.8 per cent from 11.1 per cent the previous month.
Loans to Cyprus residents increased by €36.5 million during the month. Household lending rose by €12.6 million, and loans to non-financial corporations grew by €32.4 million. Lending to other domestic sectors, however, decreased by a combined €8.5 million.
What The Numbers Signal
The latest data point to continued balance sheet expansion in Cyprus’ banking sector, with deposit growth remaining solid and lending activity showing renewed momentum. For banks, that combination typically reflects a system that is still attracting savings while continuing to support business and household borrowing.
