On Thursday 10th April the Central Bank of Cyprus published its new monthly report on the interest rates on deposits and loans offered by local financial institutions to the population of the island.
In February, all banks in Cyprus reduced interest rates on mortgage loans. In addition, many have also reduced interest rates on term deposits.
However, despite this trend, lending rates for households and businesses in the island state remain well above the euro area average, while deposit rates are much lower.
In particular, the average interest rate on loans for house purchase in Cyprus was 4.17% in February, compared with 2.43% in the euro area. The highest rate in this category was charged by Societe Generale - 3.28%. This was followed by Housing Finance Corporation at 3.31%, Ancoria Bank at 3.57%, National Bank at 3.65%, Cyprus Development Bank at 3.65%, Hellenic Bank at 3.9%, Alpha Bank at 4.01%, Astrobank at 4.10%, Eurobank at 4.25% and Bank of Cyprus at 4.54%.
The banks offering the highest interest rates on loans to enterprises of up to five years in February 2025 were Ancoria (5.17%), Bank of Cyprus (5.26%), Cyprus Development Bank (5.32 %), Banque SBA (5.44%), Societe Generale (5.63 %) and Astrobank (5.66 %). The lowest rates were charged by National Bank (4.16%), Hellenic Bank (4.25%), Eurobank (4.61%) and Alpha Bank (4.65%). The average interest rate on loans to large enterprises in Cyprus was 4.92%, compared with 3.25% in the euro area.
As regards deposits of up to two years for households in euro, the average interest rate for all banks in Cyprus was 1.11%, compared with 2.44% in the euro area.
The least favourable conditions for households were offered by Hellenic Bank (0.64%), Bank of Cyprus (0.78%), Astrobank (1.47%), Cyprus Development Bank (1.6%), Alpha Bank (1.72%), Eurobank (1.78%), Ancoria (1.79%), Jordan Ahli Bank (1.84%) and Housing Finance Organisation (1.87%). And the cheapest are Arab Jordan Investment Bank (2.71%), National Bank (2.38%), Banque SBA (2.25%) and Jordan Kuwait Bank (2.21%).
On the other hand, the banks offering the highest interest rates on corporate term deposits of up to two years in February 2025 were Societe Generale (2.29%), Astrobank (2.23%), Cyprus Development Bank (2.18%), Jordan Kuwait Bank (2.17%). They are followed by Arab Jordan Investment Bank and Banque SBA (both 2.04%), National Bank (1.98%), Alpha Bank (1.84%), Jordan Ahli Bank (1.82%), Hellenic (1.68%), Bank of Cyprus (1.51%), Ancoria (1.5%), Housing Finance Organisation (1.26%) and Eurobank (1.24%). The average interest rate on deposits in this category was 1.6%, compared with 2.76% in the euro-zone.