Bank profits slip 1%to Rs505b

Pakistan’s banks earned a combined Rs505 billion after tax in the first nine months of 2026, a 1% year-on-year decline, according to The Express Tribune, citing an Arif Habib Limited report. Interest costs and operating expenses grew faster than income from interest, while lower taxation and stronger non-interest revenue softened the decline.

Interest income rose 6%, but interest expenses increased 9%, keeping net interest income unchanged at Rs1.6 trillion. Non-interest income advanced 18% to Rs504 billion, while operating costs climbed 15% to Rs1.1 trillion; the sector also recorded a Rs21 billion net reversal of provisions.

For the third quarter, listed banks’ aggregate profit fell 3% year-on-year to Rs164 billion. The report said a 50-basis-point policy rate increase at October’s end could weigh on fourth-quarter earnings, while UBL led deposit growth at 6% to Rs6.5 trillion.