Pakistan’s big banks enjoyed another good year in 2015, improving their metrics across the board. Yet as the government borrows less from them and activity in the China Pakistan Economic Corridor (CPEC) increases, they will be both pushed and pulled towards lending more to the real economy.
For now, in an improving economy, the sector remains in robust health. In calendar year 2015 deposits grew 12.6% to Rs10,390bn ($99.35bn), and assets 16.8% to Rs14,140bn, according to the State Bank of Pakistan (SBP), the country's central bank. Asset quality improved, as the ratio of non-performing loans (NPL) to loans fell from 12.3% to 11.4% and the provision coverage ratio improved from 79.8% to 84.9%.
