Banks witness high growth prospects

The domestic banking sector is poised to continue its strong growth trajectory despite likely higher effective tax – 15 percent flood surcharge – in the second quarter of current year 2011.

The banking experts projected earnings for five big banks (as a group) would increase by at least 20 percent on yearly basis in first half of current year 2011, propelled by strong Net Interest Income growth, contained provisions and improved non-interest income.

Profit growth for selected medium-sized banks including BAFL, AKBL and SNBL is expected to be even higher, they added. Considering the shift in asset mix toward government securities and the surge in profits in current year 2010 and first quarter of current year 2011, they believe banks have successfully adapted to new economic realities.

From: Dailytimes