AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Banks in Pakistan are expected to report a year-over-year decline in core income for the second quarter of the calendar year 2025, according to a financial preview provided by JS Global. The contraction is attributed to narrowing net interest margins (NIMs) amid declining yields, which is anticipated to impact quarterly profits.
Despite the contraction in core income and the continued reduction in asset yields, the dividend strategies for the second quarter are expected to remain stable. This suggests that banks may maintain their current dividend plans despite the pressure on income.
The financial outlook for several banks was outlined in the report, highlighting the expected earnings per share (EPS) for the quarter. Bank Al Habib Limited (BAHL) is projected to report an EPS of Rs8.3, representing a 16% year-over-year decrease. Similarly, Faysal Bank Limited (FABL) is expected to report an EPS of Rs3.6, down 19% from the previous year.
Other banks such as MCB Bank Limited and Bank Alfalah Limited (BAFL) are also projected to see declines in their EPS, with anticipated decreases of 18% and 32%, respectively. Meanwhile, Askari Bank Limited (AKBL) and Habib Metropolitan Bank (HMB) are projected to experience growth in their EPS, with increases of 46% and 8%, respectively. Habib Bank Limited (HBL) is expected to see an 11% rise in its EPS.
The report underscores the pressures faced by the banking sector due to declining yields, yet it also indicates areas of resilience within the industry.