The return on assets (ROA) (before tax) increased to 2.6% at the end of September from 2.2% a year ago. PHOTO: FILE
The asset base of the banking sector increased 2.1% in the third quarter of 2015, according to the quarterly performance review of the banking sector released by the State Bank of Pakistan (SBP) on Wednesday.
The return on assets (ROA) (before tax) increased to 2.6% at the end of September from 2.2% a year ago. However, the SBP added that the likely adjustment on account of provisions against infected portfolio by the end of the year may keep a check on further growth in profits.
Public-sector demand for credit remained strong due to fiscal needs while private-sector advances witnessed nominal seasonal decline of 0.4%, the SBP said. Well-aligned with the domestic credit cycle, deposits also declined by 2.6%, it said.
On the soundness of the banking sector, the report added that the asset quality remained stable, as non-performing loans (NPLs) almost stayed unchanged at Rs630 billion.
Published in The Express Tribune, November 26th, 2015.
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