Banking industry spread surge to 5.5 pc

Karachi, March 27, 2019: Banking industry spread for the month of Febʼ19 surges to 5.50 (+8bpsMoM / +73bpsYoY), marking the 5th consecutive monthly uptick in industry spreads.

Lending yields on outstanding loans have climbed to 10.46 (+277bps YoY) following 450bps in rate reversals up to Janʼ19, with further increase in yields expected next month.

Meanwhile, cost of outstanding deposits touched down at 4.96% (+18bpsMoM / +204bpsYoY), pricing in the full impact of rate reversals to date.

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