Interest rates on bank deposits in hryvnias slide in past two weeks

Interest rates on bank deposits in hryvnias slid in the past two weeks.

This is reported by the media outlet LIGA.net with reference to a survey of current deposit programs in Ukrainian banks.

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Demand deposits in hryvnias lost 0.13 percentage points (pp) in rates, to 4.29% per annum. Deposits for up to a month became cheaper by 0.06 pp, to 6.12% per annum. The average rate on deposits for the period from six to twelve months fell by 0.05 percentage points, to 7.73% per annum.

Simultaneously, the yield of bank deposits fell by 0.04 pp for periods from a month (to 6.0%) and from three months (to 7.29%). Deposits for a period of over a year have become cheaper by 0.02 percentage points, to 7.78% per annum.

Deposits in U.S. dollars for the period of less than a month (0.56%) and from one month to three (0.88%) remained unchanged. The yield of demand deposits dropped by 0.01 pp, to 0.4% per annum. Savings for over a year lost 0.04 pp and their yield became 1.6% per annum. The yield increased simultaneously for deposits for periods of over three months and over six months (by 0.01 pp to 0.85% and to 1.14% per annum).

The yield on bank-deposited savings in euros increased slightly.

In particular, rates on deposits in the euro have not changed for terms of less than a month (0.31%) and from a month to three months (0.57%). Demand deposits fell in price by 0.02 pp, to 0.16% per annum. The rate went up by 0.01 pp for deposits for periods of three months (0.84%), six months (0.9%), and twelve months (1.03%).

Previous indicators

• Ukrainian banks' net profit in January-August 2020 decreased by 26.4% compared to the same period in 2019, to UAH 32.6 billion, or US$1.16 billion.
• As of October 23, 2020, according to the NBU, 74% of the surveyed banks noted the significant liberalization of price conditions for approved applications for loans.