Asset quality of the banking sector improves in Q4CY17 - SBP Report

News Image

MG News | March 21, 2018 at 08:02 PM GMT+05:00

0:00

The Quarterly Performance Review (QPR) of the Banking Sector for the quarter ended 31st December, 2017 has been released by SBP today. As highlighted in the report, improving asset quality, stable liquidity, robust solvency and slow pick-up in private sector advances are the key developments during the 4th quarter of CY17.

As per trend, asset base of the banking sector has expanded by 4.5 percent in Q4CY17. The promising demand from textile and cement sectors have improved gross advances (domestic) to private sector (by 7.3 percent QoQ and 16.4 percent YoY), despite retirements in chemical and pharmaceuticals. Banks have mostly invested in short-term MTBs while investments in PIBs and Sukuk have declined. Moderate growth in deposits and higher inter-bank borrowings have supported the funding needs of the banks.

Besides steady performance, the risk profile of the banking sector has remained satisfactory amid moderation in profitability. Asset quality has improved as the Non Performing Loans (NPLs) to gross loans (infection) ratio, recorded at 8.4 percent as of end December 2017, has touched the lowest level in a decade. The banking sector has earned profits (before tax) of PKR 266.8 billion during Oct-Dec, 2017 (ROA of 1.6 percent and ROE of 19.5 percent). Encouragingly, Net Interest Income (NII) has improved; thanks to high growth in advances since the last few years. The Capital Adequacy Ratio (CAR) of the banking sector has improved to 15.8 percent, which is, well above the minimum required CAR of 11.275 percent.

The report is accessible here

Related News

Name Price/Vol %Chg/NChg
KSE100 133,782.35
325.79M
0.91%
1205.36
ALLSHR 83,615.82
940.14M
0.76%
632.14
KSE30 40,681.77
65.23M
0.80%
322.98
KMI30 191,640.88
61.56M
0.48%
913.56
KMIALLSHR 55,891.51
405.64M
0.35%
193.03
BKTi 36,988.68
20.05M
2.06%
746.62
OGTi 28,181.50
5.52M
-0.50%
-141.92
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 113,205.00 113,320.00
110,880.00
960.00
0.86%
BRENT CRUDE 68.81 70.48
68.58
-1.38
-1.97%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
1.00
1.04%
ROTTERDAM COAL MONTHLY 108.60 110.00
108.60
0.85
0.79%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.78 68.65
66.58
-1.60
-2.34%
SUGAR #11 WORLD 16.25 16.56
16.22
-0.31
-1.87%

Chart of the Day


Latest News
July 10, 2025 at 07:25 PM GMT+05:00

SBP reserves rise to $14.5bn in a week


July 10, 2025 at 05:14 PM GMT+05:00

Car sales rise 64% in June 2025


July 10, 2025 at 05:01 PM GMT+05:00

Gold price in Pakistan rises Rs3,200 per tola


July 10, 2025 at 04:33 PM GMT+05:00

PSX Closing Bell: El Toro


July 10, 2025 at 04:33 PM GMT+05:00

PKR weakens by 10 paisa against USD



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg