Deposits and loans in Cyprus both recorded net increases in August, with annual credit growth accelerating further while total deposits climbed to €59.3 billion, according to figures released by the Central Bank of Cyprus (CBC) on Friday.

Total deposits rose by a net €171.5 million during the month, slowing from an increase of €562.3 million in July.

Their annual growth rate nevertheless picked up to 6.5 per cent, from 6.2 per cent a month earlier.

Deposits held by Cyprus residents increased by €175.3m, led by a €60.2m rise among non-financial corporations.

Household deposits, by contrast, fell marginally by €1.9m, while deposits belonging to other domestic sectors increased by a combined €117m.

On the lending side, total loans recorded a net increase of €114.6m in August, reversing a net decline of €68.7m in July.

Annual loan growth strengthened to 11.8 per cent, up from 11.1 per cent the previous month, while the outstanding stock of loans reached €28.5bn.

Loans to Cyprus residents increased by €36.5m during August.

Within that, lending to households rose by €12.6m, while loans to non-financial corporations increased by €32.4m.

Loans to the remaining domestic sectors fell by a combined €8.5m.