Deposits held by Cypriot residents have climbed to €49.1 billion, up from €48 billion in December 2024. Back in December 2019, household deposits stood at €39.3 billion, marking a 25.1% increase since the pre-pandemic period.
The successive crises of recent years, from the pandemic to the energy crunch, inflation and geopolitical upheavals, have driven households and businesses to build up savings buffers.
Slight Fall in Total Deposits
According to Central Bank of Cyprus data released on Thursday, overall bank deposits fell in July, although Cypriot deposits held steady and remain significantly higher than in 2019.
Total deposits recorded a net decrease of €154.5 million in July 2025, compared with a net increase of €654.7 million in June. This was the first decline after three consecutive months of growth.
The stock of total deposits now stands at €56.58 billion, down slightly from €56.62 billion at the end of June 2025, but above €55.9 billion in December 2024. Since the start of the year, deposits are up 1.2%, while compared with 2019 they have risen by 16.1%.
Household and Business Deposits at Record Levels
Household deposits amounted to €29.3 billion in July, compared with €29.5 billion in June and €28.9 billion at the end of 2024. In December 2019, households held €23.8 billion, meaning deposits are up 22.9% since then.
Deposits by Cypriot businesses reached €12.5 billion, up from €12.3 billion in June and €11.7 billion at the end of 2024, the highest level on record. In 2019, they stood at €9.18 billion.
Strengthening Balance Sheets
The Central Bank noted in its annual Financial Stability Report that real household incomes grew strongly in 2024 compared with 2023, mainly due to lower inflation.
At the same time, falling lending rates in the second half of 2024, especially on variable-rate loans linked to Euribor or the ECB base rate, reduced debt servicing costs, improving household finances.
Household deposits grew by 3.8% year-on-year in December 2024, reinforcing balance sheet resilience. Non-financial corporations also strengthened their positions, with deposits up 11% annually, reflecting stronger business activity and income.
A small shift was also observed from overnight deposits to time deposits of up to one year, reflecting reduced liquidity needs and an appetite for higher interest rates offered before ECB policy changes began feeding into market rates.
Sector Breakdown
The distribution of deposits across economic sectors remained broadly unchanged in 2024. The largest shares were in:
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Wholesale and retail trade (19%)
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Professional, scientific and technical activities (14%)
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Real estate management (11%, up from 10% in 2023)
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Construction (10%)
A Savings Safety Net
The Central Bank highlighted that the rise in deposits is consistent with Cyprus’s positive macroeconomic environment during 2024. The trend towards precautionary saving is expected to act as a temporary safety net, helping households and businesses meet debt obligations should economic conditions deteriorate due to global geopolitical tensions.
Eurozone Trend
The rise is not unique to Cyprus. Across the eurozone, deposits also moved upwards. According to European Central Bank data, household deposits grew by 3.4% year-on-year in July, up from 3.3% in June, while deposits from non-financial companies accelerated to 2.7% in July, from 1.6% in June.
