Update on Cyprus banking sector loans and deposits for early 2026

In the first quarter of 2026, loans managed outside the banking system by credit acquiring and servicing companies increased by €256 million, reaching a total of €19.61 billion by March 31. This growth was driven by a €131 million rise in household loans and a €118 million increase in loans to non-financial corporations. Data indicates a rise in non-performing loans for both categories, while performing loans declined. Additionally, May 2026 figures from the Central Bank of Cyprus show total banking sector deposits grew by €343.8 million to reach €58 billion, recovering from a decline in April. Lending activity also accelerated, with total outstanding loans reaching €28.1 billion in May, a year-on-year growth of 12.6 per cent. Deposits from Cyprus residents increased by €239 million during May, supported by growth in both household savings and corporate deposits. Reports also noted that guaranteed deposits in Cypriot banks reached €29.2 billion by the end of 2025.