December 26, 2023 (MLN): The banking sector spread for February 2024 has decreased by 7 basis points (bps) MoM to 6.95% as compared to a spread of 7.02% in January 2024, 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 11bps YoY as compared to a spread of 6.84% in February 2023.
The lending rate for all banks went down by 13bps MoM, while up by 3.41% YoY to stand at 18.91% in February 2024.
Moreover, the deposit rate declined to 11.95%, 7bps lower than the previous month and 3.3% higher than the previous year.
In addition, fresh lending rates stood at 20.53% during the month under review, down by 51bps MoM and up by 2.58% YoY,
Meanwhile, fresh deposit rates decreased by 68bps MoM to 9.94%.
While compared to February 2023, fresh deposit rates have increased by 8bps YoY.
As a result, the banking sector spread on fresh deposits rose 17bps MoM to 10.6% in February.
