Pakistan Banks Report Profit Rise Despite Interest Rate Decline

Karachi: Pakistan’s listed banks reported a rise in profitability, recording Rs171 billion in the third quarter of 2025, reflecting an 8% increase year-on-year and a 2% rise quarter-on-quarter.

The banks achieved these gains despite a decline in interest rates, with net interest income reaching Rs541 billion, a 6% increase from the previous year. This growth was driven by an expansion in volume and a strategic focus on current accounts.

Deposit and loan growth for the sector saw significant increases, with deposit growth at 14% and loan growth at 13% year-on-year.

The banks’ total coverage ratio stood at 115% for the period, indicating a robust capacity to cover potential losses.

Trading metrics for the banks showed a 12-month average price-to-earnings ratio of 7.1x and a price-to-book value of 1.4x. The banks also offered a dividend yield of 7% and a return on average equity of 21%.

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