With interest rates at a historic low and high liquidity recorded, Bank of Cyprus and Hellenic Bank have granted a total of €2.17 billion new loans over the first nine months of 2019.
Based on data released this week, it is obvious that it’s difficult for them to find viable borrowers since a high number of individuals as well as businesses are already burdened with non-performing loans.
The data also shows that there is interest in the areas where each bank has focused its attention as regards new loans. Bank of Cyprus’ new loans over the year’s first quarter were €491 million, and €1.6 billion over the first nine months.
Specifically, €429 million of new credit was granted to individuals, €371 million to trade, €259 million to real estate, €161 million to other sectors, €121 million to hotel and restaurant financing, and €106 million to business and other services. Also, €81 million of new loans went to the industrial sector and € 74 million to construction.
In addition, Bank of Cyprus reports that as of September 30, 2019, net loans and advances to customers amounted to €10.971 million.
Bank of Cyprus is the island’s largest lender with its market share of total loans amounting to 40.8% on September 30, 2019, compared to 41.3% on June 30, 2019 and 46.7% on March 31, 2019.
As for Hellenic Bank, a total of new net loans approved over the nine-month period of 2019 amounted to €572.5 million compared to €594.4 million in 2018. New loans to business stood at €268 million, of which €128 million were given to large businesses and €140 million to smaller ones.
In the retail sector, new loans provided by Hellenic were €215 million. Some €90 million of new loans were given to other sectors with Hellenic announcing that the Bank continued to provide loans to solvent companies and households. But they are also looking at other growth opportunities.