Banks achieve 86% growth in profits

Pakistan’s banks listed on the stock market have reported an outstanding growth of 86% in their net profit in the year ended December 2023, boosting total earnings to a record high of Rs572 billion amid a higher interest rate season in the country. The banks have managed to achieve a record high profit despite economic slowdown and underperforming industrial activities in the country. In a brief commentary, Topline Securities’ research analyst Sunny Kumar said, “This profit was primarily driven by a significant jump in net interest income (NII) amid high interest rates and balance sheet growth.” In US dollar terms, listed banks’ profit was up 36% to $2 billion in 2023 compared to 2022. In a recent report, Arif Habib Limited’s economist Sana Tawfik said that almost all the listed banks have recorded their historic high profits during the calendar year 2023.