Pakistani banks post net profit of PKR 137 billion in 2024's second quarter

The profitability of listed Pakistani banks surged 4% to PKR 137 billion in the second quarter of 2024 compared to the same period last year, according to data collected by Nukta.

This was primarily due to higher interest rates, which resulted in a 7% increase in banks' net interest income, taking it to PKR 448.297 billion ($1.6 billion).

Non-interest income of the sector was up by 49% to PKR 127 billion primarily due to gains on securities and higher foreign exchange income.

Interestingly, despite high interest rates, the sector recorded a provisioning reversal of PKR 1 billion in 2024's second quarter, compared to a provision charge of PKR 12.9 billion in the corresponding quarter last year.

Bank-wise, Meezan Bank (MEBL), MCB Bank (MCB), United Bank (UBL), Habib Bank (HBL) and Allied Bank (ABL) posted highest profits of PKR 26.7 billion, PKR 16.8 billion, PKR 15.3 billion, PKR 14.0 billion and PKR 12.5 billion, respectively.

Overall, in the first half of 2024, the profitability of listed banks increased by 12% compared to the same period last year to PKR 289 billion. This was due to an increase of 13% in interest income, taking it to PKR 881.29 billion.

Most banks maintained their dividend payouts. Moving forward, analysts expect this trend to continue amid the sector's healthy profitability and strong capital buffers.