Cyprus Sees Robust Household Asset Growth Amid Debt Decline

Cyprus is demonstrating a notable shift in its economic landscape as household financial assets soar to €65.1 billion by the end of December 2025, while household debt contracts to 54% of GDP. These figures, released by the Central Bank of Cyprus, underscore a significant trend toward deleveraging and diversified savings among Cypriots.

Household Financial Assets: A Closer Look

The report highlights a strategic distribution of household investments. Approximately 53% of these assets are maintained in cash, deposits, and loans, with the remaining balance allocated to shares (26%), debt securities (3%), and other financial instruments (17%). This diversified portfolio allocation reflects cautious optimism among households, balancing liquidity with long-term growth prospects.

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Corporate Sector Developments

Non-financial companies held €78.4 billion in financial assets. Their portfolios included 23% in cash and deposits, 6% in loans, 0.6% in debt securities, 38% in shares, and 32% in other financial instruments. Corporate debt amounted to €39.2 billion, equivalent to 107% of GDP. Compared with 2016, the debt-to-GDP ratio has declined by 99%, reflecting a continued adjustment in corporate balance sheets.

Insurance, Investment, And Pension Funds

Insurance companies held €6.2 billion in financial assets, while investment organisations managed €7.4 billion and pension funds €4.9 billion. In the insurance sector, equities accounted for 45% of assets and bonds for 28%. Investment organisations allocated 80% of assets to equities, while pension funds held 57% in equities alongside other instruments.

Long-Term Trends And Economic Implications

Since December 2016, household debt relative to GDP has decreased by 64%, while corporate debt ratios have declined by 99%. These changes indicate a shift in financial positions across households and companies, with adjustments in both asset allocation and borrowing levels.

As policymakers and industry leaders scrutinize these trends, the ongoing recalibration of asset and debt levels suggests a resilient economic framework poised for sustainable growth in the coming years.

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Eurobank Wins Two Euromoney Awards Following Cyprus Merger

by THEFUTURE.TEAM

July 17, 2026

Eurobank has been named Cyprus’ Best Bank for 2026 by Euromoney, while also receiving the award for Best Bank for Large Corporates at the publication’s latest Awards for Excellence.

Merger Marks A Milestone

The awards recognise the bank’s performance during 2025, a year marked by the completion of the legal merger between Hellenic Bank and Eurobank Cyprus. The transaction created Eurobank Limited, which the group says is now Cyprus’ largest banking and insurance organisation, with assets exceeding €28 billion.

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Euromoney’s Awards for Excellence evaluate banks’ performance over the previous calendar year, with this edition covering January 1 to December 31, 2025.

Lending, Customers And Digital Growth

Eurobank said its business lending portfolio expanded by around 17 per cent during 2025, while its customer base grew to more than 710,000 retail clients and 11,500 business customers.

The bank also continued its digital expansion, saying more than 96 per cent of transactions are now completed through digital channels, and most financing applications are submitted via its mobile app.

Expanding International Presence

Eurobank also highlighted the opening of its first representative office in India, describing the move as a step toward strengthening business links between Cyprus and India while supporting Cyprus’ role as a gateway to the European Union for Indian businesses and investors.

According to the bank, Euromoney recognised not only the successful completion of the merger but also its lending growth, digital transformation and contribution to Cyprus’ position as an international business and investment hub.

CEO On The Awards

“The Euromoney awards confirm Eurobank’s strong momentum and the successful implementation of our group’s strategy in Cyprus,” Chief Executive Michalis Louis said.

He said the merger strengthened the bank’s ability to support households, businesses and the wider economy, while highlighting continued investment in digital services and the opening of the representative office in India as key milestones during the year.

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