Banking sector spread decreases by 15bps MoM in October

November 23, 2023 (MLN): The banking sector spread for the month of October 2023 has decreased by 15 basis points (bps) MoM to 7.71% as compared to a spread of 7.86% in September 2023, the State Bank of Pakistan's monthly data released on weighted average lending & deposit rates showed.

On a yearly basis, the banking sector spread has increased by 1.49% YoY as compared to a spread of 6.21% in October 2022.

The lending rate for all banks went up by 8bps MoM and 5.37% YoY to stand at 19.33% in October 2023.

Moreover, the deposit rate jumped to 11.62%, 23bps higher than the previous month and 3.88% higher than the previous year.

In addition, fresh lending rates stood at 19.88% during the month under review, down by 37bps MoM and up by 3.79% YoY,

Similarly, on a monthly basis,  fresh deposit rates decreased by 36bps MoM to 11.25%.

While compared to October 2022, fresh deposit rates have surged by 1.71% YoY.

As a result, the banking sector spread on fresh deposits inched down by 1bps MoM to 9.04% in October.

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