Five Banks In Pakistan Report Rs 450 Billion Record Profit In 9 Months Of Calendar Year 2023: Meezan Bank Takes Lead
ISLAMABAD ( Web News )
Pakistan’s five leading banks in Pakistan have reported a massive profit of 450 billion rupees in the first nine months of the ongoing calendar year. It is the pre-tax profit the banks have earned from January to September period in 2023. In US dollars, this profit is equal to $1.60 billion while keeping in view October 27 dollar-rupee exchange rate of Rs 280 in the inter-bank trading.
The massive banking sector profit does not indicate any economic crisis in the country which is far from the ground realities. The fact is that the banks have enhanced the rates of their multiple service charges.
Additionally, the SBP’s discount rate has gone up to 22 percent in 2023 and the banks are mopping up a huge profit from lending to the government, private sector, and individuals.
Moreover, since the outbreak of COVID-19, online financial transactions have witnessed a mammoth growth which multiplied the bank sector profits.
The banks usually charge two to three percent over and above the SBP’s policy rate for private sector loans. However, for individual borrowers, the banks charge eight to 10 percent over and above the discount rate of the central bank, citing different justifications.
From Jan-Sept 2023, Meezan Bank Limited earned a record profit of 115.92 billion (pre-tax). Its profit after payment of taxes closed at 58.90 billion rupees this year. Meezan Bank Limited is the first and largest Islamic bank in Pakistan.
The MCB is the second-largest profit-oriented commercial bank in Pakistan. The bank earned 96.90 billion rupees in profit in nine months of this calendar year. Its post-tax profit amounted to 48.34 billion.
Habib Bank Limited earned 83.50 billion in profit before tax payments during this period. HBL ranked third in profit-making in 2023.
Meanwhile, United Bank Limited and National Bank of Pakistan are in the fourth and fifth position in earning profit this year. UBL reported 81.11 billion rupees profit before taxation while NBP earned 72.36 billion pre-tax payment profit during Jan-Sept period of 2023.
Allied Bank stands on 6th position with 58.45 billion rupees PBT and 29.03 billion PAT (profit after tax) during the period under review.
Bank Al-Habib closely followed the Allied Bank and earned 53.42 billion profit (PBT) and 29.28 billion rupees PAT.
Notably, Standard Chartered Bank of Pakistan and Faysal Bank reported the same profit before tax this year. SCBP earned 24.86 billion profit before tax while Faysal Bank reported 24.11 billion PBT. Habib Metropolitan Bank, nonetheless, generated 37.83 billion profit (PBT), and its net profit ended at 19.76 billion rupees after payment of taxes.