Cyprus experienced contrasting financial trends in October 2024, with total loans decreasing by €213 million while deposits increased by €377.6 million, according to data released by the Central Bank of Cyprus.
Deposits on the Rise
Total deposits reached €54.6 billion in October, recording a net increase of €377.6 million compared to a €485.7 million rise in September. The annual growth rate of deposits climbed to 5.4%, up from 4.5% the previous month.
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Deposits by Cypriot residents contributed significantly, with an increase of €230.2 million. Within this category:
- Household deposits rose by €64.9 million.
- Deposits from non-financial corporations increased by €115.8 million.
- Other domestic sectors added €49.4 million to the total.
Loans Continue to Decline
The total loan portfolio shrank to €24.8 billion in October, following a €213 million net decrease, in contrast to a €107.3 million increase in September. The annual growth rate of loans remained steady at 2%.
Loans to Cypriot residents dropped by €130.4 million, with mixed performance across sectors:
- Household loans saw a modest increase of €9.4 million.
- Loans to non-financial corporations declined sharply by €132.2 million.
- Other domestic sectors recorded a €7.6 million reduction in loans.
Key Insights
The data suggests a cautious approach by borrowers amid economic conditions, alongside growing confidence in savings, as reflected by the increase in deposits. This trend highlights a shift in financial behaviour within Cyprus, with implications for lending strategies and deposit incentives in the coming months.
