Pakistan Banks: Performance CY’24: Rate cut Headwinds Hindered the Headings - By AHCML Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The combined profit after tax of the top five banks&mdash;HBL, UBL, NBP, MCB, and ABL&mdash; deteriorated by 5.5%YoY to PKR82bn in 4QCY24, compared to PKR87bn in 4QCY23.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">In 2024, Pakistan&rsquo;s banking sector demonstrated remarkable resilience, reaching historic milestones despite facing economic headwinds. UBL stood firm, delivering an impressive profit after tax (PAT) of PKR 75.78 billion, a testament to its strength in a challenging year. However, the journey wasn&rsquo;t without hurdles&mdash;banks had to contend with a sharp 1,000 basis points cut in the policy rate, which put pressure on net interest margins and profitability.</span></li></ul><...