By KYIV. Nov 10 (Interfax-Ukraine) – The average rate of new hryvnia corporate deposits in October decreased for the third month in a row, but immediately by 1.9 percentage points (pp), to 10.6% per annum, which corresponds to the level at the beginning of the year.
The National Bank of Ukraine (NBU) said on its website that a decrease in the rate during this period was also recorded on retail deposits, but not so significant – by 0.4 pp, to 11.9%, which corresponds to the indicator in May of this year.
The National Bank said that the yield on foreign currency retail deposits in October dropped by 0.2 pp, to 1%, while corporate deposits – by 0.1 pp, to 0.5%.
Despite a greater reduction in rates, corporate clients last month, after some pause, again outpaced households in terms of growth in deposits: businesses increased them by UAH 15.36 billion, or 1.4%, to UAH 1.132 trillion, while households – by UAH 6.83 billion, or 0.7%, to UAH 1.005 trillion.
At the same time, the population even slightly reduced hryvnia deposits – by UAH 245 million, to UAH 663.6 billion, increasing them in foreign currency by UAH 7.07 billion, to the equivalent of UAH 342.6 billion.
Corporate deposits in October grew in all currencies: in hryvnia – by UAH 10.47 billion, to UAH 786.2 billion, in foreign currency – by UAH 4.89 billion, to UAH 345.63 billion.
The total loan portfolio, which returned to slow growth in July, added another 4.6 billion in October and reached UAH 981.4 billion.
According to the data, the growth was largely ensured by hryvnia retail loans, which increased by 1.8% to UAH 206.76 billion, while foreign currency loans decreased by 1.4% to the equivalent of UAH 12.47 billion.
Corporate loans in national currency in October decreased slightly – by 0.1%, to UAH 508.61 billion, which may be due to the tightening of the conditions of the government lending program 5-7-9%, and at the same time they fell in foreign currency – by 0.7%, to the equivalent of UAH 232.56 billion.
Interbank lending rates, according to the NBU, after falling by 1 percentage point in September, dropped another 0.5 pp in October, to 16.7% per annum. However, for overnight loans they, on the contrary, grew by 0.6 pp, to 17%.
As reported, on October 26, the NBU lowered the key policy rate from 20% to 16% per annum, but left rates on all transactions with banks at the same level, in particular, on three-month certificates of deposit (CDs) – 20%, on overnight CDs – 16%.
Inflation in Ukraine year-over-year at the end of October slowed to 5.3% from 7.1% at the end of September and 8.6% at the end of August.
