Cypriot Banks Maintain Steady Loan Growth, Surpassing €3 Billion in 2023

Cypriot banks have demonstrated resilience in loan provision throughout 2023, exceeding €3 billion in total net new loans by November despite fluctuations in interest rates. In November 2023, net new loans reached €257.8 million, indicating a marginal 0.2% decrease compared to the same period the previous year. Business loans exceeding €1 million experienced a 12.4% year-on-year decrease, totaling €99.7 million, while housing loans saw a 5.9% increase, reaching €87.8 million.

Analyzing data from January to November 2023, the overall net new loans approached €3 billion, reflecting a 4.94% increase compared to the same period in the previous year. Large business loans, constituting almost 43% of the total, played a significant role in driving this growth.

Examining specific loan categories reveals a modest 2.97% annual decline in business loans under €1 million, totaling €42.4 million in November. In contrast, consumer loans surged remarkably by 72%, reaching €21.3 million.

Small business loans, representing 15.7% of the total loans, experienced a slight decrease, amounting to €468 million in 2023, compared to €470 million in the previous year. Consumer loans, accounting for 7.2% of the total, increased to €215 million from January to November, compared to €142 million in the previous year.

The 'other loans' category, representing 3.2% of the total new loans, saw a 22% annual increase, amounting to €6.6 million in November. Overall, 'other loans' reached €97 million in the same period, compared to €72 million last year.

According to data released by the Central Bank of Cyprus (CBC), pure new loans, excluding renegotiations, in November amounted to €257.8 million, marking a marginal 0.2% decrease year-on-year. Corporate new loans of over €1 million, showing an annual increase of 12.4%, amounted to €99.7 million.

House purchase loans, rising by an annual 5.9% in November 2023, reached €87.8 million, compared to €82.9 million in November of the previous year.

New corporate lending declined by 2.97% year on year in November, amounting to €42.4 million compared with €43.9 million the year before, according to the CBC.

Consumer credit rose by 72% in November, reaching €21.3 million compared with €12.4 million in November last year, whereas other pure new credit rose by 22% year on year, reaching €6.6 million from €5.4 million in November 2022.

By fLEXI tEAM