All commercial banks in the country performed exceptionally well in the last quarter, comparing this to the same time last year, the profit grew by 26%
Commercial banks in Pakistan earned a record profit of Rs 85 billion in the last quarter of the financial year 2021-22. Experts and economists indicate the fall in the value of PKR against the US dollar to be the primary reason behind high profits.
These numbers surely are massive, comparing them to the third quarter of the financial year 2021-22, you would find that the amount of profit is more than double. Comparing the profit to the last quarter of the previous financial year, the commercial banks profit has grown by more than 26%.
Alpha Beta Core (ABC) CEO, Khurram Shehzad while commenting on the commercial banks profits said that the “The foreign exchange (rupee-dollar exchange rate) income growth for these banks ranged between 50%-550% on a year-on-year basis with the US dollar going up by 46% from Rs157 in June 2021 to Rs229 by June 2022”.
Baffled by the huge profits, Shehzad said that “Banking and Forex are the best businesses to have in Pakistan”.
Apart from the increasing dollar rates, the interest rates also play an important part in increasing revenue for banks since interest revenue is one of the primary sources of earning for commercial banks.
Rumors are that these profits are only going to increase because of the rising interest rates that will boost interest earnings.