Total assets of the banking sector grew from Rs 22.12 trillion in CY19 to Rs 25.07 trillion in CY20 showing an increase of 13.33 percent. Total liabilities and equity (including others) witnessed increases of 13.29 percent and 13.80 percent respectively during the year. Growth of the banking sector was attributed to an increase of 13.68 percent in the balance sheet size of local banks that hold 97.07 percent share of banking sector balance sheet. Foreign banks comprising 2.93 percent share in total assets of banking sector, recorded an increase of 2.87 percent during CY20. Profit before and after tax of banking sector as a whole increased by Rs 94.63 billion or 29.61 percent and Rs 65.14 billion or 35.48 percent respectively during the year CY20 over CY19. The State Bank of Pakistan has reported these developments in its Financial Stability Report for 2016-20, released on July 7, 2020.
Development Finance Institutions (DFIs) exhibited an expansion in their balance sheet size during the period under review. Total assets increased by 13.41 percent to reach Rs 381.83 billion in CY20 from Rs 336.69 billion during CY19. Total liabilities increased by 16.00 percent or Rs 38.38 billion in CY20 over CY19. Total shareholders’ equity (including others) posted a rise of 6.98 percent in CY20 when compared with CY19. During the year profit before tax increased by 54.54 percent with an amount of Rs 4.63 billion and profit after tax increased by 53.77 percent or Rs 3.54 billion over the previous year.
Microfinance sector continued its positive stride during the year, with total assets increased by 31.65 percent to reach Rs 492.62 billion in CY20 from Rs 374.20 billion in CY19. Total liabilities increased by Rs 114.74 billion or 35.06 percent while total equity (including others) increased by Rs 3.68 billion or 7.88 percent respectively in CY20 over CY19. Interest/mark up income of the microfinance banks recorded an increase of Rs 9.31 billion in CY20 .i.e. an increase of 14.10 percent over previous year. Interest/ mark up expense also increased by Rs 4.30 billion contributed to record an increase in net interest income with an amount of Rs 5.01 billion in CY20. Loss before and after taxation decreased by
Rs 6.57 billion and Rs 6.32 billion respectively during the year.
Asset base of leasing sector was decreased by 9.79 percent during the FY20 from Rs 31.29 billion in FY19 to Rs 28.23 billion in FY20. Total income of the sector posted an increase of 5.18 percent in FY20 to reach at Rs 4.79 billion. Profit before tax and profit after tax is recorded as Rs 0.85 billion and Rs 0.56 billion respectively in FY20 as compared to Rs 1.49 billion and Rs 1.05 billion in FY19.
Analysis reveals that balance sheet size of investment banks increased by 0.85 percent during FY20 as compared to FY19. Total shareholders’ equity (including others) increased by 25.72 percent over the previous year. A decrease of 13.91 percent is observed in total liabilities during FY20. Profit before tax increased from Rs 0.15 billion in FY19 to Rs 0.24 billion in FY20.