January 24, 2024 (MLN): The banking sector spread for the month of December 2023 has decreased by 1 basis points (bps) MoM to 7.62% as compared to a spread of 7.63% in November 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 1.35% YoY as compared to a spread of 6.27% in December 2022.
The lending rate for all banks went up by 7bps MoM, while up by 4.63% YoY to stand at 19.34% in December 2023.
Moreover, the deposit rate jumped to 11.72%, 8bps higher than the previous month and 3.29% higher than the previous year.
In addition, fresh lending rates stood at 21.1% during the month under review, down by 11bps MoM and up by 4.56% YoY,
Meanwhile, fresh deposit rates increased by 11bps MoM to 10.88%.
While compared to December 2022, fresh deposit rates have increased by 2.92% YoY.
As a result, the banking sector spread on fresh deposits fell 22bps MoM to 10.22% in December.
