AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Despite a challenging interest rate environment, Pakistan’s listed banks have reported a remarkable surge in profitability, reaching Rs168 billion, marking a 22% increase year-on-year (YoY) and a 3% rise quarter-on-quarter (QoQ) in the second quarter of 2025. This impressive performance underscores the sector’s resilience amidst financial pressures.
The net interest income (NII) of the banking sector has shown a significant uplift, recording Rs539 billion, which is a 19% increase YoY and a 1% gain QoQ. This growth is attributed to an expansion in volume, advantageous repricing strategies, and a higher yield from repo borrowings, demonstrating the banks’ adeptness at navigating the complexities of the current economic landscape.
Furthermore, the deposit and loan growth of the banks rose by 14% and 8% YoY, respectively, in the second quarter of 2025. This indicates a robust expansion in the sector’s core financial activities, contributing to the overall stability and growth of the banking industry.
The sector’s total coverage ratio, a crucial measure of its financial health, stands at a solid 108% for the period. Additionally, banks are trading at a last 12 months average price-to-earnings (PE) ratio of 6.8x, price-to-book value (PBV) of 1.3x, dividend yield of 7%, and return on average equity (ROAE) of 21%. These metrics highlight the sector’s strong financial performance and attractiveness to investors.
The data, sourced from JS Global, provides a comprehensive overview of the banking sector’s robust financial health and its capacity to thrive despite economic challenges. This performance sets a positive tone for future growth prospects in Pakistan’s banking industry.