CBC: February lending rates down, deposit rates up

All credit institutions in Cyprus proceeded with reductions in mortgage interest rates in February, according to comparative data published by the Central Bank of Cyprus. At the same time, most institutions also slightly reduced the interest rate offered on term deposits.

Nevertheless, lending interest rates for households and businesses remain significantly higher compared to those in the Eurozone, while deposit rates remain considerably lower than those in the European banks.

According to the data, the lowest interest rate for a house purchase with a term longer than 5 years for households is 3.28%, offered by Societe Generale, which reduced its rate from 3.32% in January. Next is the Housing Finance Corporation, which lowered its rate to 3.31% from 3.32% in January. They are followed by Ancoria Bank with 3.57%, the National Bank of Greece and the Cyprus Development Bank with 3.65%, Hellenic Bank with 3.90%, Alpha Bank with 4.01%, Astrobank with 4.10%, Eurobank with 4.25%, and Bank of Cyprus with 4.54%. The average rate across all institutions is 4.17%, while the Eurozone average is 2.43%.

Regarding term deposit interest rates of up to two years for households, the highest average annual rate is offered by Arab Jordan Investment Bank at 2.71%, followed by National Bank of Greece at 2.38%, Banque SBA at 2.25%, and Jordan Kuwait Bank at 2.21%. The Housing Finance Corporation offers 1.87%, Jordan Ahli Bank 1.84%, Ancoria 1.79%, Eurobank 1.78%, Alpha Bank 1.72%, Cyprus Development Bank 1.60%, Astrobank 1.47%, Bank of Cyprus 0.78%, and Hellenic Bank 0.64%. The average rate across all institutions is 1.11%, while the corresponding rate in the Eurozone is 2.44%.

Reductions were also recorded in most business loan interest rates for terms longer than five years, with the lowest at National Bank of Greece at 4.16%. This is followed by Hellenic Bank at 4.25%, Eurobank at 4.61%, and Alpha Bank at 4.65%. Rates exceeding 5% are offered by Ancoria at 5.17%, Bank of Cyprus at 5.26%, Cyprus Development Bank at 5.32%, Banque SBA at 5.44%, Societe Generale at 5.63%, and Astrobank at 5.66%. The average rate across all institutions is 4.92%, while the corresponding rate in the Eurozone is 3.25%.

As for average annual term deposit interest rates for business deposits up to 2 years, the highest rate is offered by Societe Generale at 2.29%. This is followed by Astrobank at 2.23%, Cyprus Development Bank at 2.18%, Jordan Kuwait Bank at 2.17%, Arab Jordan Investment Bank and Banque SBA at 2.04%, National Bank of Greece at 1.98%, Alpha Bank at 1.84%, Jordan Ahli Bank at 1.82%, Hellenic Bank at 1.68%, Bank of Cyprus at 1.51%, Ancoria at 1.50%, Housing Finance Corporation at 1.26%, and Eurobank at 1.24%. The average across all institutions stands at 1.60%, compared to 2.76% in the Eurozone.