Pakistan's banking sector deposits posted a growth of 7.1% on a year-on-year (YoY) basis in December 2022, revealed data released by the State Bank of Pakistan (SBP).

Deposits increased to Rs22.467 trillion by December 2022, compared to Rs20.972 trillion in December 2021. However, on a monthly basis, deposits declined by 1.2%, compared to Rs22.732 trillion in November 2022.

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According to brokerage house Arif Habib Limited (AHL), advances also grew by a healthy 17.4% YoY to Rs11.913 trillion during the last month of 2022, as compared to Rs10.149 trillion in the same period last year. On a monthly basis, advances posted a growth of 7.4% compared to Rs11.092 trillion posted in November 2022.

Meanwhile, investments jumped by 26.7% YoY to Rs17.902 trillion in December 2022, compared to Rs14.124 trillion recorded in the same month last year. However, on a monthly basis, investments registered a decline of 3.1%, as compared to Rs18.483 trillion recorded in November 2022.

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Advances-to-total deposits (ADR) ratio stood at 53% in December 2022, up by 463 basis points (bps) YoY, as compared to 48.4% ADR in the same month last year. On a monthly basis, ADR posted an increase of 423bps, as compared to 48.8% registered in November 2022.

Moreover, investment-to-deposit ratio (IDR) clocked in at 79.7% in December 2022, up by 1,233bps YoY, as compared to 67.3% recorded in December 2021. On an MoM basis, IDR posted a fall of 163bps, after clocking in at 81.3% in November 2022.