The Pakistan banking sector earnings CY25 demonstrated strong momentum, with cumulative profits reaching PKR 671 billion. This represents an 11% year-on-year increase despite a low policy rate environment.
Banks listed on the Pakistan Stock Exchange maintained profitability by effectively managing funding costs. Although interest income declined, a sharp drop in interest expenses helped offset the impact.
As a result, net interest income (NII) improved, supporting overall sector performance.
Pakistan Banking Sector Earnings CY25: Top Performers
The Pakistan banking sector’s CY25 earnings were led by United Bank Limited (UBL), which posted its highest-ever after-tax profit of PKR 130 billion. Meezan Bank (MEBL) followed with PKR 90.7 billion, while the National Bank of Pakistan (NBP) recorded PKR 85 billion.
In terms of growth, NBP stood out with a 227% year-on-year increase. Higher NII, lower operating expenses, and the absence of a one-off pension charge recognised in CY24 supported the surge.
UBL reported 73% growth, while Bank of Punjab (BOP) achieved 18% growth.
Dividend payouts remained strong across the sector. MCB Bank announced a dividend per share (DPS) of PKR 36. NBP declared PKR 35 per share, UBL offered PKR 29.5 per share, and MEBL announced PKR 28 per share.
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On the deposits front, Habib Bank Limited (HBL) led with PKR 5.5 trillion in total deposits. UBL followed with PKR 5.1 trillion, and MEBL reported PKR 3.3 trillion.
In terms of deposit growth, UBL posted a 96% year-on-year increase. Faysal Bank Limited (FABL) followed with 37%, while MEBL achieved 28%.
Overall, the sector’s resilience reflects efficient cost management and sustained deposit expansion. Even with lower interest rates, banks delivered higher earnings and maintained shareholder returns.
