Pakistan listed banks reported an impressive 31 percent year-on-year increase in profits during the first quarter of 2021 (1q2021) to reach Rs 64.4 billion, showing an increase of Rs 15.2 billion.

As per the Topline Securities report, the profit is up by 32pc Quarter on Quarter during the quarter. Aided by strong deposit growth of 18pc YoY, Net Interest Income (NII) recorded an increase of 7pc YoY i.e. Rs11.4 billion in spite of a sharp decline in interest rates. However, NII reported a decline of 2pc QoQ as the repricing of assets reach its completion.

As per the report, non-interest income too reported an improvement of 14pc YoY or a Rs 7.1 billion led by higher dividend income i.e. 59pc increase YoY, forex income increased 21pc YoY, and fee income increased by 13pc YoY. The same also increased by 10pc QoQ on the back of higher capital gains on government securities.

The provision charge during the quarter declined by 59pc YoY or Rs 9.9 billion and 74pc QoQ as banks had booked general provision in 1Q2020 in light of the Covid-19 outbreak.

In absolute terms the highest quarterly profit was earned by HBL (Rs 8.6 billion) followed by NBP (Rs 7.8 billion) UBL (Rs 7.6 billion), MCB (Rs 7.1 billion) and MEBL (Rs 6.1 billion). In terms of profit growth the highest increased was seen in HBL (108pc YoY), HMB (103pc YoY), SNBL (92pc YoY), NBP (90pc YoY) and BAHL (64pc YoY).