Cyprus sees robust rebound in deposits – loans record modest growth

The total value of deposits in Cyprus witnessed a substantial increase of €87.7 million in September 2023, marking a recovery after two consecutive months of decline, according to a report released by the Central Bank of Cyprus (CBC) on Wednesday.

The report noted that there was a €175.5 million decrease in deposits in August 2023, while July 2023 saw a €301.1 million drop.

Moreover, the annual rate of change in deposits for September 2023 reached 1.6 per cent, compared to 1.7 per cent in August 2023.

The total deposits balance for September 2023 reached €52 billion, compared to €51.7 billion in September 2022.

On the other hand, total loans in September 2023 recorded a modest net increase of €19.2 million, compared to an €8.5 million net increase in August 2023, presenting a zero annual rate of change, in contrast to the negative 0.5 per cent observed in August 2023.

What is more, the balance of total loans for September 2023 stood at €24.9 billion, compared to €28.3 billion in September 2022.

These financial indicators demonstrate a promising recovery in Cyprus’s banking sector and overall economic environment, with increased confidence in the local economy leading to a rebound in deposit levels and a modest growth in loan portfolios.