Pakistan Bank: Banks earnings to fall 10% YoY and 24% QoQ in 4Q2024 Market Weight Stance Maintained – By Topline Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Topline Banking Universe is likely to post an earnings decline of 10% YoY and 24% QoQ in 4Q2024, amid a higher effective tax rate.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">To recall, the government abolished the additional tax of 10-16% on banks due to low ADR; however, it increased the standard income tax for banks from 49% to 54% (including a super tax of 10%) for the year ending on Dec 31, 2024.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Profit before tax of the sector is likely to increase by 9% YoY, driven by higher Net Interest Income (NII) and Non-Interest Income</span></li></ul><p></p>