Karachi: Pakistan's banking sector has reported record-high core income and bottom-line figures for the third quarter of the calendar year 2024, marking a robust rebound following a brief slowdown in the first quarter. This resurgence comes after a period of consistent growth over 12 consecutive quarters, highlighting the sector's resilience and adaptability.

According to JS Global, the sector's strong performance was primarily driven by a decline in the cost of funds. As the savings deposit rate and borrowing costs are closely tied to the Policy Rate, a reduction of 250 basis points during the quarter contributed significantly to the improved financial outcomes. Additionally, stable asset yields, influenced by anticipated monetary easing priced into previous quarters, played a key role in this growth.

The banking sector also benefited from a rise in Non-Interest Income, which supported bottom-line expansion for the sixth consecutive quarter, particularly through growth in fee income. Despite facing challenges such as increased operating expenses and subjective provisioning, these were not sufficient to offset the profit growth achieved during the period.

A summary of the sector's key profitability and balance sheet indicators and ratios, based on a sample of 12 banks representing 87% of the sector's market capitalization, was included in the report released today.