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A significant increase in gains on securities to Rs14bn from losses of Rs65 million in 2019 also supported the three banks’ bottom-line profitability. AFP/File
ISLAMABAD: Moody’s Investor Services on Thursday said that despite lower interest margins, higher provisioning for non-performing loans amid the pandemic, leading Pakistani banks post strong profit growth in 2020.
In a statement, the Moody’s said the financial results announced by three leading banks – MCB, Allied and Habib Bank – as of Feb 22 were credit positive and reflect containment of the pandemic’s adverse effects. “However, we expect pressure on 2021 profitability amid narrower net interest margins and ongoing asset quality deterioration,” it said. ....

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