{"id":11450,"date":"2025-09-01T11:52:37","date_gmt":"2025-09-01T06:52:37","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11450"},"modified":"2025-09-01T11:52:41","modified_gmt":"2025-09-01T06:52:41","slug":"pakistans-banks-post-solid-growth-in-2q-cy25","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/pakistans-banks-post-solid-growth-in-2q-cy25\/","title":{"rendered":"Pakistan\u2019s Banks Post Solid Growth in 2Q CY25"},"content":{"rendered":"\n<p>Pakistan\u2019s banking sector has experienced a strong second quarter of 2025, indicating that the industry remains resilient despite ongoing economic challenges.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Profits are up <\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Listed banks earned <strong>Rs168 billion<\/strong> in profits during 2QCY25.<\/li>\n\n\n\n<li>That\u2019s a <strong>22% increase compared to the same period last year (YoY)<\/strong>.<\/li>\n\n\n\n<li>On a quarterly basis, profits dipped slightly by 3%, but the overall trend is still positive.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What\u2019s driving the profits?<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Higher Interest Income<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Banks made more money from lending and investments.<\/li>\n\n\n\n<li>Net Interest Income (NII) grew <strong>19% YoY<\/strong>, with strong performances from <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ubl\/\" data-type=\"post_tag\" data-id=\"181\" target=\"_blank\" rel=\"noreferrer noopener\">UBL<\/a><\/strong>, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/nbp\/\" data-type=\"post_tag\" data-id=\"113\" target=\"_blank\" rel=\"noreferrer noopener\">NBP<\/a><\/strong>, and <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/bop\/\" data-type=\"post_tag\" data-id=\"118\" target=\"_blank\" rel=\"noreferrer noopener\">BOP<\/a><\/strong>.<\/li>\n\n\n\n<li>UBL\u2019s NII, for example, jumped a massive <strong>213% YoY<\/strong> to Rs91 billion.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Lower Costs<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Financial charges fell as interest rates eased.<\/li>\n\n\n\n<li>This reduced the pressure on banks\u2019 earnings.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Other Income Sources<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Fee income, foreign exchange dealings, and investments also supported earnings.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Dividends stay attractive<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Most banks continued to pay good dividends, rewarding shareholders.<\/li>\n\n\n\n<li>For example, dividend yields remained in double digits for leading names.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Key concerns <\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Slow Loan Growth<\/strong>: Advances (loans to businesses and individuals) dropped compared to the industry average.<\/li>\n\n\n\n<li><strong>Rising Competition in Remittances<\/strong>: Some banks faced pressure on income from remittances due to heavy competition.<\/li>\n\n\n\n<li><strong>High Taxation<\/strong>: The effective tax rate for banks is still on the higher side, affecting net profits.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Outlook <\/h2>\n\n\n\n<p>Analysts expect banks to remain profitable, supported by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Strong deposit growth, especially in current accounts.<\/li>\n\n\n\n<li>Lower interest rates reduce borrowing costs.<\/li>\n\n\n\n<li>Continued focus on efficiency (cost-to-income ratios improving).<\/li>\n<\/ul>\n\n\n\n<p>Pakistan\u2019s banks are demonstrating resilience, with strong earnings growth, attractive dividend yields, and improving operational efficiency. However, loan growth and competition in remittances remain areas to watch.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pakistan\u2019s banking sector has had a strong second quarter of 2025, showing that the industry is still growing despite economic challenges.<\/p>\n","protected":false},"author":9252,"featured_media":9295,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[153],"tags":[118,113,181],"class_list":["post-11450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-bop","tag-nbp","tag-ubl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/05\/Top-X-Stocks-1140x445.jpg",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/05\/Top-X-Stocks-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/05\/Top-X-Stocks-300x188.jpg",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/05\/Top-X-Stocks.jpg",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11450"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11450\/revisions"}],"predecessor-version":[{"id":11451,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11450\/revisions\/11451"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/9295"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}