CYPRUS: Loans-to-deposits ratio widens in Dec 2014 (update)

The loans-to-deposits ratio of the island’s banking system widened in December, the first month that the Central Bank of Cyprus issued monetary statistics on the basis of the new regulations and the guideline of the European Central Bank.

The monthly Monetary Financial Institutions (MFIs) Loans and Deposits Statistics showed that total deposits in December 2014 rose €138.1 mln, compared to a net increase of €86.6 mln in November 2014, for a total of €46.1 bln.
The year-on-year growth rate stood at -4.0% as compared with -4.4% y-o-y in November 2014.
Residents deposits, according to CBC data, rose in December by €107.1 mln to €32.3 bln. Deposits of third countries residents also increased by €4.1 mln to €11.8 bln.
Deposits of residents of other EU member states increased by €26.9 mln to €1.95 bln.
Household deposits rose by €329.6 mln to €22.3 bln, while corporate deposits fell by €144.8 mln to €5.43 bln.
Total loans in December 2014 saw a net increase of €505.3 mln, compared to a net increase of €7.7 mln in November. The year-on-year growth rate stood at -1.4% as compared with -2.4% y-o-y in November 2014.
Residents loans grew in December by €766.5 mln, totalling €49.6 bln, while loans to residents of EU member states dropped by €390.9 mln to €3.1 bln. Loans to third country residents increased by €129.7 mln to €8.8 bln.
The outstanding amount of loans reached €61.6 bln in December 2014, the central bank statistics said, with the amount of non-performing loans (NPLs) stubbornly at 51% of the system’s loanbook in November.
Recent data suggested that so far only €3.1 bln of NPLs had been restructured.