FINANCE: Small increase in deposits at Cyprus banks but loans dip

A small increase of 0.4% in deposits in Cyprus banking institutions was recorded in April 2019 after a drop in March said the Central Bank, while loans recorded a decrease.

According to Cyprus Central Bank data, deposits increased by EUR 236.9 mln to 47.7 bln from 47.5 bln in March. In March 2019, deposits were down by EUR 327.7 mln.

The year-on-year fluctuation rate dropped to 0.6%, compared with 5.1% in March 2019, as the increase in deposits was much lower than in April 2018.

Total deposits in April last year saw an increase of EUR 2.4 bln, due to a 2.5 bln deposit made by the Republic of Cyprus to the now defunct Co-op Bank with the intent to stop a bank run caused by uncertainty over the bank’s future.

Cypriot deposits in April this year stood at EUR 37.7 bln, increasing from EUR 37.4 bln in the previous month but lower than EUR 39.3 bln in April 2018.

According to the data, third-country residents' deposits stood at EUR 6.87 bln, dropping from EUR 6.94 bln in the previous month. In April 2018, they amounted to EUR 7.94 bln.

Deposits of citizens from the Eurozone, including Greece, remained stable at EUR 3.2 bln, which was the same for both last month and April 2018.

Decrease in loans

Unlike deposits, loans saw a decrease. The total value of loans in April 2019 dropped by EUR 206.4 mln (net), compared to a net increase of EUR 63.2 mln in March 2019.

The annual rate of change was -2.3%, compared to -2% in March.

The number of loans to residents increased by 0.1% in April compared to last April 2018.

Consumer loans increased by 0.5% against an increase of 0.9% in the previous month, while mortgages recorded an increase of 0.3% 0.1%.

Business loans increased by 2.5% compared to March.

The outstanding amount of total loans reached EUR 38 bln in April 2019.