Banks Profitability up 14%

ISLAMABAD:Pakistan listed banks profitability clocked in Rs173bn, up by 14% YoY and 12% QoQ in 1Q2025.

Despite the decline in interest rates, the sector’s NII clocked in at Rs536bn, up 23% YoY and 2% QoQ in 1Q2025, led by volumetric growth, favourable repricing, and higher yield of repo borrowings.

 Deposit and Loan growth of banks was up 11% YoY and 14% YoY respectively in 1Q2025. The sector’s total coverage ratio stands at 114% in 1Q2025.

Banks start receiving Hajj applications

 Banks are currently trading at last 12 months average PE of 4.5x, PBV of 0.9x, Dividend Yield of 11% and ROAE of 21%.