According to the latest data from the Central Bank of Cyprus, total deposits in the country's banking system grew by €654.7 million in June 2025, several times higher than the €20.8 million increase in May. Compared to May, annual deposit growth increased from 5.8% to 7.1%.
Total funds in accounts reached €56.6 billion. Cyprus residents contributed significantly to this increase; their deposits grew by €652.7 million. Households and private businesses were particularly active. Deposits from individuals increased by €39.6 million and deposits from companies increased by €465.3 million. The rest of the domestic economy contributed an additional €147.8 million.
Lending is also on the rise—demand for loans is growing
Along with the growth in deposits, lending activity increased significantly. In June, net lending increased by €672.3 million — six times more than in May, when it increased by €116.8 million.
The annual growth rate of the total loan portfolio reached 6.8%, up from 5.1% the previous month, and the total volume of loans issued reached €26.3 billion. Loans issued to Cyprus residents demonstrated the most significant growth, increasing by €471.1 million. Meanwhile, loans to households increased by €110.1 million and loans to businesses increased by €216.9 million. The remaining domestic sectors of the economy showed growth of €144.1 million.
What is driving growth: economic stability and renewed business activity
The sharp increase in deposits and lending volumes indicates a high degree of confidence in the Cypriot banking system and a general economic recovery. The increase in business deposits may be linked to higher profits and improved liquidity, while active lending points to an expansion of investment and consumer activity.
The increased interest in loans can also be explained by more optimistic expectations among households and businesses, particularly given stable European Central Bank interest rates and the ongoing recovery in the construction and tourism sectors.
Cyprus' financial outlook for June 2025: positive signs for the economy
June data underscore the stability of Cyprus's financial system and the revitalization of economic processes in the country. The increase in deposits and loans demonstrates the private sector's significant involvement and positive sentiment among consumers and entrepreneurs. This is particularly important in the context of preparations for the new financial year and the government's efforts to strengthen the economy through digitalization, sustainable development, and tax reforms.