Loans-to-deposits ratio widens in Dec 2014

The loans-to-deposits ratio of the island’s banking system widened in December, the first month that the Central Bank of Cyprus issued monetary statistics on the basis of the new regulations and the guideline of the European Central Bank.

The monthly Monetary Financial Institutions (MFIs) Loans and Deposits Statistics showed that total deposits in December 2014 rose EUR 138.1 mln, compared to a net increase of EUR 86.6 mln in November 2014, for a total of EUR 46.1 bln.

The year-on-year growth rate stood at -4.0% compared with -4.4% y-o-y in November 2014.

Residents deposits, according to CBC data, rose in December by EUR 107.1 mln to 32.3 bln. Deposits of third countries residents also increased by EUR 4.1 mln to 11.8 bln. Deposits of residents of other EU member states rose by EUR 26.9 mln to 1.95 bln. Household deposits rose by EUR 329.6 mln to 22.3 bln, while corporate deposits fell by EUR 144.8 mln to 5.43 bln.

Total loans in December 2014 saw a net increase of EUR 505.3 mln, compared to a net increase of EUR 7.7 mln in November. The year-on-year growth rate stood at -1.4% as compared with -2.4% y-o-y in November 2014.

Residents loans grew in December by EUR 766.5 mln, totalling 49.6 bln, while loans to residents of EU member states dropped by EUR 390.9 mln to 3.1 bln. Loans to third country residents increased by EUR 129.7 mln to 8.8 bln.

The outstanding amount of loans reached EUR 61.6 bln in December 2014, the central bank statistics said, with the amount of non-performing loans (NPLs) stubbornly at 51% of the system’s loanbook in November. Recent data suggested that so far only EUR 3.1 bln of NPLs had been restructured.