Cyprus Sees Deposit Recovery and Modest Loan Growth in September 2023

In a report released by the Central Bank of Cyprus (CBC), it was revealed that the total value of deposits in Cyprus experienced a notable increase of €87.7 million in September 2023. This positive development marked a recovery after two consecutive months of decline in deposit levels. The report provided further insights into the state of Cyprus's financial sector.

The data indicated that in August 2023, there was a significant decrease of €175.5 million in deposits, and in the preceding month, July 2023, there was a more substantial drop of €301.1 million. However, the annual rate of change in deposits for September 2023 showed a minor decrease, standing at 1.6 percent, compared to 1.7 percent in August 2023. The total deposit balance for September 2023 reached €52 billion, reflecting a positive trend compared to the €51.7 billion recorded in September 2022.

Conversely, the total loans in September 2023 recorded a modest net increase of €19.2 million. This was an improvement over the €8.5 million net increase observed in August 2023. Furthermore, the annual rate of change in total loans showed no change, stabilizing at zero percent. This was in contrast to the negative 0.5 percent seen in August 2023. The total balance of loans for September 2023 was €24.9 billion, which showed a decline from the €28.3 billion recorded in September 2022.

These financial indicators depict a promising recovery in Cyprus's banking sector and the overall economic environment. The increase in deposits reflects renewed confidence in the local economy, leading to a rebound in deposit levels. Additionally, the modest growth in loan portfolios indicates a positive trend in the financial landscape of Cyprus.

By fLEXI tEAM