Household financial assets reach €65.30bn, central bank reports

The Central Bank of Cyprus (CBC) on Friday published its Quarterly Financial Accounts for the reporting period ending in March 2026, providing an overview of the financial positions of insurance companies, investment funds, pension funds, households and non-financial corporations.

The report showed that household and corporate debt both increased marginally compared with the previous quarter, although debt ratios remained substantially lower than a decade earlier.

According to the CBC, the financial assets of insurance companies amounted to €6.10 billion at the end of March 2026.

Of these assets, 7 per cent were held in cash and deposits, 2 per cent in loans, 29 per cent in debt securities, 45 per cent in shares and 18 per cent in other financial assets.

The financial assets of investment funds totalled €7.60bn, with 4 per cent invested in cash and deposits, 13 per cent in loans and debt securities, 80 per cent in shares and 3 per cent in other financial assets.

Meanwhile, pension funds held €5.00bn in financial assets, the report added.

Their portfolios consisted primarily of 55 per cent in shares, alongside 14 per cent in cash and deposits, 13 per cent in loans, 6 per cent in debt securities and 11 per cent in other financial assets.

The CBC also reported that households’ financial assets reached €65.30bn by the end of March 2026.

Of the total, 53 per cent consisted of cash, deposits and loans, while 4 per cent was invested in debt securities, 26 per cent in shares and 17 per cent in other financial assets.

What is more, household debt stood at €20.10bn at the end of March 2026, the figures showed.

The corresponding household debt ratio reached 55 per cent of gross domestic product (GDP), representing a marginal increase compared with the previous quarter.

However, compared with December 2016, the household debt ratio has fallen by 63 per cent, highlighting a significant long-term improvement in household indebtedness.

The financial assets of non-financial corporations totalled €79.60bn at the end of the first quarter.

These assets comprised 22 per cent in cash and deposits, 5 per cent in loans, 0.5 per cent in debt securities, 39 per cent in shares and 33 per cent in other financial assets.

The debt of the non-financial corporate sector amounted to €40.00bn at the end of March 2026.

Its debt ratio stood at 109 per cent of GDP, marking a marginal increase from the previous quarter.

Nevertheless, compared with December 2016, the debt ratio of non-financial corporations has declined by 97 per cent, according to the central bank.