SBP releases first half performance report of banking sector for 2020

The State Bank of Pakistan (SBP) has released a review of the performance of the banking sector for the first half of 2020 on Wednesday.

The review comprehensively covers the performance and health of the banking sector for the period January-June 2020 (first half of 2020), while the coronavirus outbreak resulted in a modest 7.8% increase in banking assets during the first half of the year.

The sharp rise in investments has been fueled by an increase in funding deposits, which reflects growth.

According to the report, the level of debt reduction could have been much higher without the support of the SBP, but the policy measures of the SBP have increased capital protection and lending capacity.

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Banking Sector’s performance and resilience remained satisfactory during H1CY20, says the Mid-Year Performance Review of the Banking Sector.
For press release: https://t.co/Fizy65XloX
For complete report: https://t.co/lpbfWh85Sk

— SBP (@StateBank_Pak) November 11, 2020

The volume of non-performing loans increased from 8.6% at the end of December 2019 to 9.7% in June, while the net non-performing loan-to-debt ratio, a better way to measure debt risk, increased slightly from 1.7% to 1.9%. Is.

Revenues improved significantly, with profits up 52% ​​year-on-year, with higher interest income, lower interest expenses, and higher non-interest income.

The volume of Banking Sector Austerity Capital (SAC) increased from 17.0% in December 2019 to 18.7% in June 2020. The results of the sixth wave of SBP’s Systemic Risk Survey conducted from July to August 2020 also Included in the review.

For now and for the next six months, survey participants consider global risks and threats to the national economy to be important, and the steps taken by the SBP to mitigate the effects of the coronavirus have been appreciated by stakeholders.

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