Karachi, March 8, 2025 – The State Bank of Pakistan (SBP) has imposed a monetary penalty of Rs 134.61 million on JS Bank Limited during the calendar year 2024.
This penalty marks a significant increase compared to Rs 81.48 million imposed in the previous year, as disclosed in JS Bank’s annual financial statement for 2024.
JS Bank reported a Profit Before Tax of PKR 6,366.077 million for the year ending December 31, 2024, reflecting a decline from PKR 8,515.174 million in 2023. The Earnings Per Share (EPS) for JS Bank stood at PKR 1.39 in 2024, compared to PKR 2.75 in the preceding year.
Despite the regulatory penalty, JS Bank’s Net Interest Income (NII) demonstrated robust growth, increasing by 22 percent to PKR 27,313 million in 2024 from PKR 22,409 million in 2023. This increase was primarily driven by higher interest rates and strategic deposit optimization. The Bank’s Non-Remunerative Deposit base also saw an increase of 24 percent, rising from PKR 160,546 million in 2023 to PKR 198,409 million in 2024, improving the deposit mix from 33 percent to 38 percent.
JS Bank’s Gross Advances surged by 16 percent, reaching PKR 247,714 million as the Bank worked towards meeting its year-end Advances to Deposits Ratio (ADR) target while navigating the additional ADR tax measures. However, the Bank’s margins remained under pressure due to fluctuating secondary market yields and stable funding costs during the first half of the year.
The latter half of the year saw the effects of rate cuts, but JS Bank continued to experience lower yields in the market. The Bank’s Non-Markup Income slightly declined by 7 percent year-on-year, settling at PKR 11,340 million. However, this included an 18 percent rise in Fee Income and a 32 percent increase in Dividend Income, along with net gains on securities amounting to PKR 641 million. Foreign Exchange income saw a notable decline of PKR 2,467 million due to reduced volatility in FX markets compared to the previous year.
JS Bank’s Non-Markup Expenses rose by 18 percent year-on-year, reaching PKR 27,574 million, driven by inflationary pressures, rupee depreciation, and increased technology-related expenditures. Consequently, the Bank’s Cost to Income Ratio increased to 70.7 percent in 2024, while its Net Interest Income to Operating Cost improved from 97 percent to 100 percent.
As of December 31, 2024, JS Bank’s total Deposits stood at PKR 525.134 billion, reflecting an 8 percent growth compared to the previous year. The Bank’s average Non-Remunerative Deposits improved from PKR 143.916 billion in 2023 to PKR 165.927 billion in 2024, reinforcing its deposit mix enhancement strategy.
Gross Advances at JS Bank reached PKR 247.714 billion by the end of 2024, pushing the Bank’s Gross ADR to 47 percent. However, the Gross Infection Ratio increased to 8.61 percent from 7.6 percent in 2023, as non-performing loans rose to PKR 21.328 billion in December 2024 from PKR 16.184 billion a year earlier.
Considering additional classifications and provisions under IFRS 9, JS Bank improved its coverage ratio to 71 percent in 2024, up from 60 percent in the previous year. As the Bank continues its growth trajectory, it remains focused on mitigating financial risks while optimizing its operational efficiencies.
