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Review of banking industry performance from Jan-Sep 2018

Review of banking industry performance from Jan-Sep 2018


The above table gives a snapshot of banking industry performance at the close of third quarter of CY2018. From the table, key industry figures could be summarized as below:

1. Assets: PKR 16,728 Billion
2. Deposits: PKR 12,937 Billion
3. Equity: PKR 1,255 Billion
4. Advances: PKR 6,861 Billion
5. Branches: 12,519
6. CASA: 74.2%
7. CA: 37.6%
8. Net Interest Margin: 3.5%
9. ADR: 53%
10. Coverage: 86.3%
11. Gross infection: 7.5%
12. Net infection: 1.1%
13. Capital Adequacy Ratio: 14.8%
14. Cost to Income: 62.7%

The big five banks lead the way with Habib Bank Limited on top (PKR 2,627 billion) while National Bank of Pakistan (PKR 2,469 billion) and United Bank Limited (PKR 1,963) trailing close behind.


Habib Bank Limited leads deposit mobilization as well with PKR 2,059 billion with National Bank of Pakistan and MCB Bank Limited. Following closely.


Equity wise, Habib Bank Limited, National Bank of Pakistan, Allied Bank Limited, United Bank Limited and MCB Bank Limited are strong banks.


Both Habib Bank Limited and National Bank of Pakistan have followed aggressive lending policies comprising almost 30% of the pie-size whereas United Bank Limited has taken a moderate stance. Allied Bank Limited and MCB Bank Limited are treading cautiously in this regard.


Habib Bank Limited leads with the highest number of branches with National Bank of Pakistan, United Bank Limited, Allied Bank Limited and MCB Bank Limited following close behind.


As far as opening of Current & Savings Accounts is concerned, MCB Bank Limited and Standard Chartered Bank are way above the industry average with 89% and 92% respectively whereas JS Bank lags behind in CASA mobilization.



Current Account

Out of the above, Bank Al-Habib and Allied Bank Limited hold the highest number of current accounts in the banking industry whereas Bank of Khyber has the lowest number of current accounts.

Net Interest Margin

Owing to their consumer finance portfolio, Silk Bank and Meezan Bank have their net interest margin greater than the industry whereas Sindh Bank has the lowest NIM.

Advances to Deposit Ratio

Both Silk Bank and Soneri Bank pursue aggressive lending policy whereas ADR of Standard Chartered Bank is the lowest in the industry.

Interest Coverage

As regards interest coverage, almost all banks are ‘covered’ with Meezan Bank and Standard Chartered Bank leading the way.

Gross Infection

National Bank of Pakistan has the most infected loan portfolio at 14.2% with NPLs of Bank of Punjab and Bank Islami following close behind whereas Bank Al-Habib has the cleanest lending portfolio.

Net infection

The NPLs of Bank Islami surpass the industry average figure whereas Meezan Bank has a zero-infection loan portfolio.

Capital Adequacy Ratio

Allied Bank Limited has the highest CAR whereas Bank of Punjab has the lowest CAR in the industry.

Cost to income

JS Bank, BankIslami & Sindh Bank need to curtail their expenses as the cost and expenditure of these banks is way above the industry average whereas cost to income of Bank of Punjab is the lowest.

[box type=”note” align=”” class=”” width=””]The writer is a Karachi based freelance columnist and is a banker by profession. He could be reached on Twitter @ReluctantAhsan[/box]

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