Banking Sector’s ADR Improves to 51.8% in December 2024

Bank advances increased by Rs. 700 billion as of December 27, 2024, according to the latest data by the State Bank of Pakistan (SBP). The banking sector’s Advance-to-Deposit (ADR) also improved to 51.8 percent. The ratio had previously bottomed out at 38.4 percent in August 2024. Since then, the ADR has increased by 13.5pps to reach its current level of 51.8 percent, Arif Habib Limited said in a brief commentary. Over the period from August 2024 to 27 December 2024, deposits have decreased by 2.3 percent, while advances have increased by 32.0 percent. The sector’s total advances surged to Rs. 15.6 trillion by the end of December, compared to Rs. 14.9 trillion reported by end-November 2024, showing an increase of 4.7 percent month on month (MoM). Bank investments showed a small increase of Rs. 0.3 trillion or 1 percent MoM in December (till 27th) to stand at Rs. 29.3 trillion, according to the SBP’s data. The investment-to-deposit ratio clocked in at 97.3 percent as of 27 December 2024. Bank deposits arrived at Rs. 30.1 trillion as of December 27, down 3.2 percent compared to Rs. 31.1 trillion last month.