Deposits of Cypriot businesses reached a historic €12.5 billion in July 2025, up from €11.7 billion at the end of last year and €9.18 billion in December 2019, according to Central Bank of Cyprus (CBC) figures released this week.

Household deposits stood at €29.3bn, compared with €28.9bn in December 2024 and €23.8bn in 2019, marking an increase of 22.9 per cent since before the pandemic.

Overall, domestic residents’ deposits amounted to €49.1bn, stable from June and up from €48bn at the end of 2024.

Total deposits across the banking system came to €56.58bn in July, slightly lower than €56.62bn in June, after a net monthly decline of €154.5 million.

This followed three months of gains and compared with a €654.7m rise in June.

Even so, total deposits remain 1.2 per cent higher than at the start of the year and 16.1 per cent above December 2019 levels.

The CBC, in its financial stability report, said household resilience improved in 2024 as real incomes rose and inflation fell. Lower lending rates in the second half of the year eased debt servicing costs, strengthening balance sheets.

Corporate deposits grew at an annual rate of 11 per cent last year, reflecting stronger business activity and improved incomes. A modest shift was also seen from overnight and notice deposits towards time deposits of up to one year, pointing to both reduced liquidity needs and higher rates on offer.

The bank noted that precautionary savings are acting as a temporary safety net, enabling households and firms to meet loan obligations if domestic conditions worsen due to geopolitical tensions.

Across the eurozone, deposits also edged higher. The European Central Bank (ECB) data showed household deposits rose at an annual pace of 3.4 per cent in July, up from 3.3 per cent in June, while corporate deposits grew by 2.7 per cent, compared with 1.6 per cent the previous month.