Interest on mortgages, household deposits rate up in December

The Central Bank of Cyprus (CBC) has released detailed data on interest rates at Monetary Financial Institutions (MFIs) in Cyprus for December 2024.

The data for a number of categories can be seen below:

Housing Loan Interest Rates

The average rate on new housing loans (new contracts and renegotiations) across all MFIs in Cyprus increased to 4.75% in December 2024, up from 4.50% in November. In contrast, the same interest rate in eurozone recorded a further decline, with the average rate standing at 4.15%.

The highest interest rate was recorded in Societe Generale at 6.60%, while the lowest was offered by the Housing Finance Corporation at 3.32%. Following Societe Generale, the highest rate was recorded by Bank of Cyprus at 5.35%, followed by Astrobank at 4.30% and Hellenic Bank at 4.27%. The Cyprus Development Bank’s rate stood at 3.86%, followed by Ancoria at 3.83%, Eurobank at 3.41%, and Alpha Bank at 3.40%.

Corporate Loans

For new loans up to €1 million to businesses with a floating rate and an initial fixed period of up to one year, the average interest rate across all MFIs in Cyprus increased to 5.14% in December, up from 5.10% in November.

Ancoria and Hellenic Bank raised their rates by 0.83% and 0.11%, respectively, with all other banks reducing theirs.

The highest rate was recorded by Banque SBA at 7.28%, while the lowest was offered by Hellenic Bank at 4.66%. Bank of Cyprus lowered its rate to 5.34%, while Ancoria increased its rate to 5.18%. Alpha Bank’s rate stood at 5.03%, and Eurobank’s at 5%. Lower rates were recorded by Societe Generale at 4.83%, while both the National Bank of Greece and the Cyprus Development Bank stood at 4.70%.

Regarding the total volume of new loans, including renegotiations, Cyprus recorded higher interest rates compared to the eurozone. The average rate across all MFIs in Cyprus rose to 5.11% in December, up from 5.01% in November. In the eurozone, the corresponding rate declined to 4.57% from 4.74% in November.

Decline in Interest Rates on Corporate Loans Over €1 Million

A significant decrease was recorded in interest rates on loans exceeding €1 million to non-financial corporations in Cyprus in December 2024. Specifically, the total interest rate on new loans above €1 million with a floating rate and an initial fixed period of up to one year stood at 4.70%, down from 5.63% in November.

The highest rate was recorded by Societe Generale at 6.07%, while the lowest was offered by Eurobank at 4.12%. Hellenic Bank’s rate stood at 5.41%, Ancoria's at 5.13%, National Bank's at 4.71%, Cyprus Development Bank's at 4.66%, and Bank of Cyprus at 4.58%.

Increase in Household Deposit Interest Rates

The average interest rate on household term deposits of up to one year rose by 0.08% in December, reaching 1.78% compared to 1.70% in November. The corresponding eurozone rate stood at 2.45%, down from 2.61%.

The highest rate was recorded in Arab Jordan Investment Bank at 3%, while the lowest was offered by Alpha Bank at 1.35%. Eurobank’s rate stood at 2.17%, Jordan Ahli Bank at 1.87%, Cyprus Development Bank at 1.76%, Bank of Cyprus at 1.71%, Housing Finance Corporation at 1.67%, Ancoria at 1.56%, Astrobank at 1.54%, Societe Generale at 1.46%, Hellenic Bank at 1.38%, and Alpha Bank at 1.35%.

Decline in Corporate Deposit Interest Rates

Interest rates on term deposits of up to one year from non-financial corporations recorded a decrease. The average rate stood at 1.74% in December, down from 1.99% in November. In the eurozone, the rate declined to 2.80% from 2.90% in November.

The highest rate was recorded in the National Bank of Greece at 2.38%, while the lowest was offered by the Housing Finance Corporation at 0.52%. Hellenic Bank’s rate stood at 2.02%, followed by Jordan Ahli Bank at 1.88%, Bank of Cyprus at 1.83%, Eurobank at 1.69%, Ancoria at 1.67%, Astrobank at 1.53%, and Alpha Bank at 1.45%. The Cyprus Development Bank recorded a rate of 1.20%, while the Housing Finance Corporation stood at 0.52%.

(Source: CNA)