Commercial Banks: Banks earnings to increase 2% YoY and 3% QoQ in 3Q2025 – By Topline Research
- Topline Banking Universe is likely to post an earnings increase of 2% YoY due to higher interest income coupled with lower provisioning charge in 3Q2025 which is largely offset by 4% YoY decline expected in Non-Interest Income. Similarly, earnings are up by 3% QoQ due to higher taxation charged in 2Q2025.
- NII of the banks in the Universe is likely to increase by 6% YoY to Rs330bn due to increase in volumetric growth. Non-Interest Income of the Topline Universe is also likely to post a decline of 4% YoY in 3Q2025, mainly due to lower expected Capital Gains.
- We maintain market weight stance on banking sector where Bank Alfalah (BAFL), Habib Bank (HBL), and MCB remains our top picks.