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       KARACHI: Listed banks’ profitability clocked in at Rs153 billion, down one per cent year-on-year and 2pc quarter-on-quarter in October-December 2024, according to a research report of Topline Securities.

       “For analysis we have taken all listed banks that have announced their financial results except for Bank of Khyber (BOK), Samba Bank (SBL), and Silk Bank, which have not yet announced their results,” said the report.

       Despite the decline in interest rates, the sector’s net interest income clocked in at Rs523bn, up 5pc YoY and 4pc QoQ in 3Q2024, led by volumetric growth and favourable re-pricing impact. Interest income declined by 4pc YoY and 13pc QoQ to Rs1.6trillion, whereas interest expense declined by 8pc YoY and 20pc QoQ to Rs1.1tr.

       On the other hand, non-interest expense rose by 30pc YoY and 42pc QoQ to Rs329bn in 4Q2024 due to NBP’s one-time pension expense. In the full year 2024, NBP has booked total pension expanse of Rs57bn.

       This takes the sector’s cost-to-income ratio to 47pc in 4Q2024, compared to 40pc in 4Q2023 and 42pc in 3Q2024.

       Published in Dawn, March 4th, 2025