Banking Sector: After-tax profit surges 52%

CAR remained strong at 17.2%, well above the local requirement of 10% and international benchmark of 8%

KARACHI: The Quarterly Performance Review of the banking sector for the quarter ending June 30, 2015 released by State Bank of Pakistan (SBP) on Wednesday, highlighted the banking sector’s profit after tax that surged by 52% year-on-year (YoY) on the back of both interest and non-interest income. Accordingly, return on assets increased to 2.7% in June 2015 from 2.1% in Jun 2014.  Capital Adequacy Ratio remained strong at 17.2%, well above the local requirement of 10% and international benchmark of 8%. During the quarter, asset base of the banking sector grew 5.7% (YoY 19.2%) compared to 3.4% in the corresponding period last year. Most of the increase in assets resulted from growth in public sector credit for matching the fiscal needs and financing commodity operations.

Published in The Express Tribune, September 24^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.