KARACHI: Pakistan listed banks profitability increased to record Rs131 billion in second quarter of 2023, said a report issued by the Topline Securities on Wednesday.

This was primarily driven by significant jump in Net Interest Income (NII) amid high interest rates, and balance sheet growth. In dollar terms listed banks profit was $459m in 2Q2023.

NII of the sector clocked in at Rs420bn in 2Q2023 compared to Rs243bn in 2Q2022, up 73 per cent as average policy rate during 2Q2023 remained to 21pc against 13pc in 2Q2023. Interest income was up by 97pc to Rs1.4tr, whereas interest expense was up by 109pc to Rs946bn.

Non-interest income of the sector fell marginally by 1pc to Rs86bn in 2Q2023 mainly due to decline in foreign exchange income. On other hand, non-markup expense was up 33pc to Rs217bn in 2Q2023 due to higher admin expense which is in line with inflation.

On quarter to quarter basis, listed banks profitability was only up 4pc in rupee terms, while down 5pc in US dollars. This is mainly due to implementation of 10pc super tax which was announced in the budget 2023-24. Effective tax rate for 2Q2023 clocked in at 52pc in 2Q2023 against 42pc in 1Q2023.

Published in Dawn, August 31st, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...