Bank loans for Ukrainians are becoming more expensive, but the profitability of deposits is decreasing.

According to the NBU, the national currency’s average interest rates on new consumer loans in January 2024 amounted to 34.6% per annum. The hryvnia’s nominated loan rates increased by 0.9 percentage points. Instead, interest rates on new household loans in foreign currency fell from 6.4% to 5% per annum. Banks’ household lending portfolios increased by 2.1% to ₴227B.

Average deposit rates for families at the beginning of the year fell from 8.6% to 8.5%. Bank rates on new hryvnia deposits for the public amounted to 11.7% per annum. Interest rates on new deposits for the public in foreign currency remained at 1%. The deposit portfolio of retail banks decreased by 2.5% to ₴1.051T.

As a reminder, the NBU began a cycle of lowering the key policy rate from 25% to 15% last year.