Cypriot banks reported a net decrease of €66.3 million in deposits and a substantial increase of €429.9 million in loans for March 2025, according to data released Tuesday by the Central Bank of Cyprus. The annual growth rate of loans accelerated to 3.1%.

The data shows that total deposits recorded a net decline of €66.3 million, reversing the trend of the previous month when deposits had increased by €498.3 million. The annual deposit growth rate slowed to 7.1%, down from 7.7% in February, while the total outstanding balance of deposits stood at €55.9 billion.

Deposits from Cyprus residents fell by €22.5 million. Although household deposits increased by €13.6 million and deposits from non-financial corporations rose by €400.1 million, these gains were offset by a €436.1 million decline in deposits from other domestic sectors, including investment funds, insurance companies, and pension funds.

On the lending side, activity increased significantly. Total loans recorded a net rise of €429.9 million in March, compared to a more modest increase of €42.7 million in February. The annual growth rate of loans jumped to 3.1%, up from 1.9% the month before, with the total outstanding loan balance reaching €25.5 billion.

Loans to Cyprus residents rose by €269.9 million, primarily driven by loans to non-financial corporations, which increased by €188.6 million. Household loans also rose by €29.8 million, while loans to other domestic sectors increased by €51.5 million.