Household financial assets reach €61.9 billion in March 2025

The Central Bank of Cyprus (CBC) on Thursday published its latest quarterly financial accounts for the quarter ending March 2025, showing continued growth in financial assets, a reduction in household and corporate debt ratios, and a strong shift towards equities in investment portfolios.

The report provides a detailed overview of financial assets and liabilities across various sectors of the economy.

According to the CBC, insurance companies posted financial assets totalling €5.7 billion. These assets are distributed with 7 per cent held in cash and deposits, 2 per cent in loans, 29 per cent in debt securities, 46 per cent in equities, and 16 per cent in other financial instruments.

Investment organisations hold €7.0 billion in financial assets. Of these, 5 per cent are in cash and deposits, 14 per cent in loans and debt securities, 79 per cent in equities, and 2 per cent in other financial instruments.

Moreover, pension funds’ financial investments reached €4.6 billion. These consist mainly of 15 per cent in cash and deposits, 14 per cent in loans, 5 per cent in debt securities, 55 per cent in equities, and 11 per cent in other financial instruments.

The latest update also showed that households’ financial assets amounted to €61.9 billion at the end of March 2025. Of this, 54 per cent relates to cash, deposits, and loans, 3 per cent to debt securities, 25 per cent to equities, and 18 per cent to other financial instruments.

Household debt stood at €19.8 billion at the end of March 2025. The relevant debt ratio reached 58 per cent of Gross Domestic Product (GDP).

This figure showed a slight decrease compared to the previous quarter, partly due to GDP growth.

Crucially, when compared to December 2016, household debt ratios have decreased significantly by around 60 per cent.

Non-financial corporations’ financial assets totalled €70.6 billion. Of these, 20 per cent were in cash and deposits, 7 per cent in loans, 0.6 per cent in debt securities, 37 per cent in equities, and 35 per cent in other financial instruments.

Debt for this sector was €40.7 billion at the end of March 2025. Its debt ratio stood at 120 per cent of GDP, showing a slight decrease compared to the previous quarter, again due to the increase in GDP.

Since December 2016, the debt ratio for non-financial corporations has declined substantially by approximately 86 per cent.

The full quarterly financial accounts report can be accessed on the CBC’s official website.