Cypriot loans reach €3 billion

Despite alterations in interest rates, Cypriot banks have maintained a steady pace in providing loans throughout 2023, exceeding €3 billion in total net new loans by November.

In November 2023, net new loans amounted to €257.8 million, showing a slight 0.2 per cent decrease compared to the same month in the previous year. Notably, business loans exceeding €1m experienced a 12.4 per cent year-on-year decrease, totalling €99.7m, while housing loans increased by 5.9 per cent, reaching €87.8m.

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

Further examination of specific loan categories reveals a modest 2.97 per cent annual decline in business loans under €1m, totalling €42.4m. On the flip side, consumer loans surged remarkably by 72 per cent, reaching €21.3m in November.

Small business loans, representing 15.7 per cent of the total loans, saw a slight decrease, amounting to €468m in 2023, compared to €470m in the previous year.

Consumer loans, accounting for 7.2 per cent of the total, increased, totalling €215m from January to November, compared to €142m in the previous year.

The ‘other loans’ category, representing 3.2 per cent of the total new loans, saw a 22 per cent annual increase, amounting to €6.6m in November, showcasing the varied lending ranges of Cypriot banks. Overall, ‘other loans’ amounted to €97m 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 decrease of 0.2 per cent year on year. Based on the CBC’s data, corporate new loans of over €1m, marking an annual increase of 12.4 per cent, amounted to €99.7m.

Loans for house purchases, rising by an annual 5.9 per cent in November 2023, reached €87.8m, compared to €82.9m in November of the previous year.

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

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