External broker reports(aggregated public sources), Topline Securities

Topline Securities

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

External broker reports(aggregated public sources)

Thematic (Sector/Industry)

Pakistan Banks / Thematic (Sector/Industry)

<ul><li>Topline Banking Universe is likely to post an earnings decline of 9% YoY in 1Q2026, primarily due to a higher operating expenses coupled with provision charge in 1Q2026 vs. reversal recorded in SPLY.</li><li>Profit before tax of the sector is likely to decline by 11% YoY due to aforementioned reasons, while on a QoQ basis, PBT is expected to remain flat, as higher provision charges are likely to be offset by a decline in operating expenses.</li><li>Net interest income (NII) for banks in the universe is expected to grow by 3% YoY to Rs329bn, supported by volumetric expansion. On a QoQ basis, however, NII is likely to decline by 1% due to the policy rate cut at the end of Dec-25.</li></ul>

Topline Banking Universe is likely to post an earnings decline of 9% YoY in 1Q2026, primarily due to a higher operating expenses coupled with provision charge in 1Q2026 vs. reversal recorded in SPLY.Profit before tax of the sector is likely to decline by 11% YoY due to aforementioned reasons, while on a QoQ basis, PBT is expected to remain flat, as higher provision charges are likely to be offset by a decline in operating expenses.Net interest income (NII) for banks in the universe is expected to grow by 3% YoY to Rs329bn, supported by volumetric expansion. On a QoQ basis, however, NII is likely to decline by 1% due to the policy rate cut at the end of Dec-25.

Pakistan Banks: Earnings To Decrease 9% YoY In 1Q2026; Led By Higher Operating Expenses And Provision Charge