Deposit rates in Cyprus continue downward trend in June
Deposit rates in Cyprus fell in June while housing loan rates continued to rise, according to a report released this week from the Central Bank of Cyprus (CBC).
In its announcement, the CBC said that the figures are published to promote transparency and help consumers and businesses make informed comparisons.
Overall, deposit interest rates in Cyprus were under downward pressure in June for both households and businesses.
By contrast, interest rates on new housing and business loans showed an upward trend, with significant variations between banks and a widening cost gap compared to the eurozone.
A slight downward trend was seen in term deposit rates of up to one year from households in euro in Cyprus.
The weighted average rate for all Monetary Financial Institutions (MFIs) declined to 1.13 per cent in June 2025, from 1.16 per cent in May and 1.26 per cent in April.
In the eurozone, the corresponding rate in June stood at 1.77 per cent.
Despite the general downward trend, returns varied significantly between banks.
“The highest deposit rates in June were offered by Eurobank Cyprus at 1.50 per cent,” the data showed.
Jordan Ahli Bank PLC maintained its rate at 1.38 per cent.
Conversely, Societe Generale Bank Cyprus offered the lowest rate at 0.62 per cent.
Significant reductions were also recorded by major local banks.
Bank of Cyprus reduced its rate from 0.86 per cent in April to 0.66 per cent in June.
Hellenic Bank kept its rate nearly stable below 1 per cent.
A similar downward pattern was observed for term deposits of up to one year from non-financial corporations.
The weighted average rate for all MFIs in Cyprus remained at 1.18 per cent in June 2025, unchanged from May, but significantly lower than April’s 1.37 per cent.
In the eurozone, the average rate during the same period stood at 1.93 per cent.
There were marginal fluctuations among banks.
In June, Societe Generale Bank Cyprus offered the highest rate in the market at 1.70 per cent.
High returns were also recorded by Eurobank Cyprus at 1.08 per cent, the Cyprus Development Bank at 1.03 per cent, and Bank of Cyprus at 1.18 per cent.
The lowest returns were found at the Cyprus Housing Finance Corporation at 0.71 per cent and Astrobank at 0.91 per cent.
Alpha Bank Cyprus showed a significant change, reducing its rate from 1.71 per cent in May to 1.47 per cent in June, following a sharp increase between April and May.
Interest rates for new housing loans with variable rates and initial fixed periods of up to one year rose in June 2025.
The weighted average interest rate for new contracts rose to 3.97 per cent, from 3.74 per cent in May and 3.71 per cent in April.
“Bank of Cyprus remains the most expensive, with a rate of 5.00 per cent for new contracts,” the central bank confirmed.
Ancoria Bank followed with 3.32 per cent, and the Cyprus Housing Finance Corporation posted 3.79 per cent.
The most competitive pricing was seen at Astrobank, which recorded a significant drop to 2.21 per cent from 3.01 per cent in May, and at Alpha Bank Cyprus with 2.57 per cent.
For renegotiated housing loans, the average rate fell slightly to 3.88 per cent from 3.90 per cent in May.
“Ancoria Bank offers the highest rate for renegotiations at 4.94 per cent,” the figures showed.
Bank of Cyprus followed at 3.97 per cent.
Alpha Bank Cyprus now participates in this category with 2.99 per cent.
The consolidated index for all new housing loan activities, including both new contracts and renegotiations, confirmed the upward trend.
It rose from 3.78 per cent in April to 3.81 per cent in May and 3.95 per cent in June.
In contrast, the eurozone saw a decline, with the average housing loan rate falling to 3.61 per cent from 3.70 per cent in May.
A decline was recorded in June 2025 in new loans to non-financial corporations for amounts up to €1 million with variable rates and initial fixed periods of up to one year.
The weighted average interest rate fell to 4.56 per cent, down from 4.84 per cent in May and 4.90 per cent in April.
“Banque SBA offers the highest rate at 6.37 per cent,” according to the central bank’s data.
Astrobank also remained at a high level, offering 5.94 per cent.
In contrast, the most affordable options were Alpha Bank Cyprus at 3.54 per cent and Hellenic Bank at 4.15 per cent, both significantly below the average.
A clear decline was also noted in renegotiated business loans.
The average rate fell to 3.80 per cent in June, from 4.12 per cent in both April and May.
Among the participating banks, Astrobank charged 5.61 per cent, significantly above average.
Hellenic Bank offered the lowest rate at 3.01 per cent.
Bank of Cyprus stood at 5.00 per cent, while Eurobank recorded 4.51 per cent.
The overall rate for all loans up to €1 million to non-financial companies in Cyprus, including both new contracts and renegotiations, dropped in June to 4.39 per cent, from 4.67 per cent in May and 4.65 per cent in April.
However, the gap with the eurozone remains clear, as the equivalent eurozone rate fell to 3.73 per cent, widening the borrowing cost disparity between Cypriot and European businesses.
A slight decline was recorded in the average rate for loans above €1 million to non-financial companies in Cyprus, with variable rates and an initial fixed period of up to one year.
The weighted average rate for new loan contracts fell to 4.01 per cent in June 2025, from 4.51 per cent in May and 4.34 per cent in April.
Astrobank provided the highest rate for June at 5.56 per cent.
Eurobank Cyprus Ltd and Bank of Cyprus offered the lowest rates at 3.86 per cent and 3.59 per cent respectively.
Hellenic Bank and the National Bank of Greece (Cyprus) offered rates of 4.28 per cent and 4.03 per cent respectively, both close to the average.
The average rate for renegotiated loans increased from 3.99 per cent in April to 4.11 per cent in June, with an interim rise to 4.71 per cent in May.
In June, Hellenic Bank lent at 4.40 per cent, while Eurobank Cyprus Ltd offered a more competitive 3.57 per cent.
Bank of Cyprus stood at 4.46 per cent.
Alpha Bank Cyprus Ltd recorded a notable decrease to 3.14 per cent from 4.38 per cent in April.
For all new loan activities over €1 million, including both new contracts and renegotiations, the average in Cyprus was 4.04 per cent compared to 3.32 per cent in the eurozone.