LAHORE: Rise in effective taxation of 50.7 percent due to imposition of super tax of 4 percent has made the banking register a decline by 10 percent QoQ, It has been learnt.
On QoQ basis, earning went down by 10 percent QoQ to Rs 42.54 billion in 2QCY15 from a PAT of Rs 47.12 billion in 1QCY15. The QoQ decline primarily cause by higher provisions and rise in effective taxation of 50.7 percent due to imposition of super tax of 4 percent, it was said.
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Combined net interest income of listed banks hike by 27 percent to Rs 216.95 billion against Rs 170.82 billion in 1HCY14 mainly due to rising investments in Pakistan Investment Bonds (PIBs), the report further said, adding that interest income surged by 13 percent to Rs 446.02 billion compared to Rs 395.65 billion in 1HCY14 due to higher earning assets and higher exposure in PIBs.
On the other hand, interest expense humbly rise by 2 percent to Rs 229.07 billion compared to Rs 224.83 billion in 1HCY14 owing to higher deposit mobilization, the report added.
Apart form higher net interest income, higher non-funded income also provided support. Non-interest income increase by 43 percent to Rs 104.82 billion against Rs 73.08 billion in 1HCY13 due to higher gains from of sales of securities and hike in fee, commission and brokerage income, it was told.
Profitability of big 5 banks namely ABL, HBL, MCB, NBP and UBL posted rise in earnings as cumulative profitability surged by 14 percent to Rs 58.07 billion from Rs 51.03 billion in 1HCY14, the report highlighted .
Habib bank limited posted robust earnings growth of 25% to scale up profit after taxation to Rs 16.91 billion (EPS: Rs 11.53) against Rs 13.54 billion (EPS: Rs 9.23) in 1HCY14, it said.
