According to a recent research report by Top line Securities, the net income of banks increased by 28% year-on-year to Rs 80.70 billion during January-March.
According to a report published, the profit growth is 19% on a quarterly basis.
According to Umair Naseer, Associate Director Research, Topline Securities, the sector’s gross income grew from net interest income (NNI), Which has increased by 21% on an annual basis to Rs. 220 billion due to increasing production of assets.
He said that the mark-up interest on for-profit assets has increased from 48% to Rs. 564 billion while the expenditure on mark-up interest on interest-bearing deposits and liabilities has increased from 72% to Rs. 344 billion.
“We expect the sector’s NNI to remain strong in the second and third quarters of 2022, given the recent rise in rates offered by the Karachi Inter bank Bank and Treasury Bill / Pakistan Investment Bond rates,” he added.
The re-pricing is expected to be completed by July-September.
The sharp decline in supply costs has also contributed to the sector’s profitability, with supply costs falling by less than 80 per cent to Rs 1.60 billion due to macro recovery and improved asset quality.
He further said that with the coverage ratio of the sector approaching 100%, the risk of sudden increase in provision charge is minimal.
According to the report, with Habib Bank Limited (up 27% to Rs 31 billion), National Bank of Pakistan Limited (up 16% to Rs 17 billion) and Bank Al Habib Limited (up 25% to Rs11.90 billion), the non-profit expenditure of this sector has increased by 19%.
Similarly, Standard Chartered Bank Pakistan Limited and Meezan Bank Limited showed the highest quarterly revenue growth of 119% and 51% year-on-year, respectively, while Soneri Bank Limited and Bank of Khyber reported annual revenue growth of Rs. Decreases of 31% and 11% have been recorded.