Loans up pound 8.5 million in August, deposits down for second month

Total loans in August recorded a net increase of pound 8.5 million, following a significant decrease of pound 100 million the previous month. Meanwhile, for a second consecutive month, deposits saw a net decrease, amounting to pound 175.5 million. According to the Central Bank of Cyprus (CBC), total deposits in August 2023 decreased by a net pound 175.5 million, in contrast to the pound 301.1 million net decrease observed in July 2023. The annual growth rate stood at 1.7%, down from 2.4% in July 2023. The total deposit balance reached pound 51.8 billion in August 2023, compared to pound 51.48 billion in August 2022. Furthermore, according to the CBC, total loans in August 2023 recorded a net increase of pound 8.5 million, contrasting with the net decrease of pound 100.3 million in July 2023. The annual growth rate for loans stood at -0.6%, an improvement from the -1.0% rate seen in July 2023. The total outstanding loans amounted to pound 25.0 billion in August 2023, showing a decrease of approximately pound 3.46 billion compared to August 2022 when they stood at pound 28.46 billion. Business and household loans also saw changes. Loans to “Other Financial Intermediaries” recorded a net increase of pound 60.1 million in August 2023 compared to the previous month, while loans to businesses decreased by pound 21.7 million following a pound 106.2 million decrease in July. Additionally, total loans to households saw a net decrease of pound 28.3 million in August 2023. Specifically, consumer loans recorded a net increase for the fourth consecutive month in August 2023, totalling pound 2.3 million. In contrast, housing loans decreased by pound 15.0 million after three months of continuous growth, and other loans to households decreased for the second consecutive month, by pound 15.7 million.

Source: Cyprus News Agency