The banking sector aggregate deposits in 2014 have registered a growth of 2 per cent, reaching
Latest figures state that banks maintained their prudent lending stance, where credit offtake remained low during the year and gross advances amounted
Investments on the other hand grew significantly by 11 per cent to
They said that with one month into 2Q2014, banking sector credit offtake remains weak, growing by only 1 per cent since
Average spreads for banks remained almost flat at 6.06 per cent in April (+1bp MoM while -13bps YoY) where the same had hit a low of 5.98 per cent (lowest since
In fact cut in DR could prove beneficial for the banks, where banking NIMs would improve due to investments in the PIBs, which yield higher returns (+2 per cent from any other investment avenue). Similarly lower DR would mean low Minimum Profit Rate (MPR) on savings deposits that the banks have to pay to their consumers.
Banks have remained in the limelight during the past couple of months where the banking sector has outperformed the KSE-100 index by 4.9pc in 2014 YTD.
The rally has been mainly led due to banks opting for more unconventional methods to bolster earnings by investing heavily in the PIBs (with higher returns)
Most Popular Stories
- Shia LaBeouf Plea Deal, Alcoholism Treatment
- Ohio State Band Chief Fired After Probe
- Hispanic Leader Goes the Extra Mile
- Stop-Start Engines Save Gas, Reduce Emissions
- Jennifer Lopez, Pitbull to Perform at Fashion Rocks
- Ukraine Says Russians Firing Across the Border
- Ford Q2 Net Profit up 6 Percent
- U.S. Weighs Refugee Status for Immigrant Kids
- Ricky Martin Joins 'The Voice ... Mexico'
- Morgan Stanley Ponies Up $275 Million to Settle SEC Charges