KARACHI: Listed banks’ profitability clocked in at Rs158 billion, down by one per cent year-on-year (YoY) and up by 16pc quarter-on-quarter (QoQ) during the July-September period of CY24.

A report compiled by Topline Securities said that despite the decline in interest rates, the sector’s net interest income clocked in at Rs507bn, up 6pc YoY and 13pc QoQ in 3Q2024, led by volumetric growth and favourable reprising impact.

Interest income was up by 17pc YoY and 2pc QoQ to Rs1.9tr, whereas interest expense was up by 21pc YoY and down by 2pc QoQ to Rs1.4tr.

The non-interest income of the sector was up by 55pc YoY and 2pc QoQ to Rs129bn in 3Q2024, primarily due to gains in securities, higher FX and fee income.

On the other hand, non-interest expense rose 21pc YoY and 5pc QoQ to Rs273bn in 3Q2024 due to higher admin expense, which is in line with the inflation trend.

In the first nine months of 2024, the profitability of banks increased by 7pc YoY to Rs447bn, mainly driven by an 11pc growth in NII to Rs1.4tr and a 56pc jump in non-interest income.

Published in Dawn, November 1st, 2024