Karachi: Pakistan's listed banks reported a profitability of Rs173 billion in the first quarter of 2026, maintaining a steady trend year-over-year despite declining interest rates. The sector saw a notable increase in non-interest income by 26% compared to the previous year, and an 18% rise from the previous quarter.
According to JS Global, there was a 12% increase in bank deposits year-over-year, while the loan book experienced an 8% growth over the same period. The sector's total coverage ratio reached 114% in the first quarter of 2026. Additionally, banks are currently trading at a price-to-earnings ratio of 6.8x over the last 12 months, with a price-to-book value of 1.4x. The dividend yield stands at 8%, and the return on average equity is reported at 20%.
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