Corporate profits down 1pc in 2024

The profits of the companies listed on the Pakistan Stock Exchange (PSX) fell one per cent to Rs1.62 trillion in 2024 from Rs1.64tr in 2023, according to a research report by Topline Securities Ltd. In US dollar terms, the profitability stood at $5.8bn, down 1pc year-on-year in 2024. However, excluding the exploration and production (E&P) sector, the profitability of KSE 100 companies improved by 8pc year-on-year to Rs1.25tr in 2024. The report, authored by Tanweer Ahmed, said the profitability of the E&P sector declined by 24pc year-on-year to Rs364bn in 2024 due to a decline in oil prices and a reduction in oil and gas production. The banking sector’s earnings increased by 6pc year-on-year to Rs593bn (37pc of the total KSE-100 index profitability) in 2024. A rise in net interest income and non-interest income primarily drove this growth.