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Pakistan's banking sector deposits posted a growth of 15.2% on a year-on-year (YoY) basis in June 2022, shared the State Bank of Pakistan (SBP) on Thursday.

Deposits increased to Rs22.8 trillion by June 2022, compared to Rs19.8 trillion in June 2021. Moreover, on a monthly basis, deposits rose by 7.8%, compared to Rs21.15 trillion in May 2022.

According to brokerage house Arif Habib Limited (AHL), advances also grew by a healthy 21% YoY to Rs10.89 trillion during the last month of FY22, as compared to Rs8.99 trillion in the same period last year. On a monthly basis, advances remained stagnant posting a marginal growth of only 0.6% compared to Rs10.82 trillion posted in May 2022.

SBP appoints 12 banks as Primary Dealers for Financial Year 2022-23

Meanwhile, investments jumped by 26.8% YoY to Rs17.42 trillion in June 2022, in comparison to Rs13.74 trillion recorded in the same month last year. On a monthly basis, investments posted a double-digit growth of 12%, as compared to Rs15.56 trillion recorded in May 2022.

Advances-to-total deposits (ADR) ratio stood at 47.7% in June 2022, up by 228 basis points (bps) YoY, as compared to 45.4% ADR in same month last year. However, on a monthly basis, ADR posted a drop of 344bps, as compared to 51.2% registered in May 2022.

Moreover, investment-to-deposit ratio (IDR) clocked in at 76.4% in June 2022, up by 695bps YoY and 282bps MoM.

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