Bank profits double to Rs284.5bn

Banks’ profits more than doubled to Rs284.5 billion in the first half of the current year from Rs126.2bn during the same period last year, according to a State Bank of Pakistan report on mid-year performance review of the banking sector (Jan-June 2023) released on Monday. The major push to earnings came from higher net interest income, as the rising interest rates translated into higher earnings. The SBP policy rate rose by cumulative 600 basis points during H1CY23. Banks’ net interest income (NII) grew by 67.3 per cent in H1CY23 compared to 23.6pc during the same period last year, as the policy rate was raised a number of times during the period under review while earning assets also posted a steady growth. Though interest income doubled to Rs2723.1bn in H1CY23 as compared to the first half of the last year, interest expenses more than doubled to Rs1882.1bn, offsetting a significant part of the growth in interest income.