The State Bank of Pakistan’s deregulation of savings deposit rates could increase banks’ earnings per share by up to 9% of annual EPS.
According to JS Global estimates released on July 7, 2026, the regulatory change removes the minimum rate-of-return requirement for eligible savings deposits. The brokerage said the move appears aimed at partly offsetting the financial impact of the discontinuation of the government’s remittance incentive rebate scheme.
Bank Al Habib Limited showed the highest estimated benefit, with a PKR 2.8 EPS impact from a 100-basis-point reduction in the minimum deposit rate. That equals 9% of annual EPS, according to the estimate.
Habib Bank Limited showed the second-highest EPS impact at PKR 3.0, equal to 6% of annual EPS. Allied Bank Limited, Askari Bank Limited and MCB Bank Limited each showed an estimated 5% annual EPS impact.
Read: SBP Saving Deposit Rule Revised as InvestPak Launched
The withdrawal of the remittance rebate scheme shifts a larger share of remittance acquisition costs onto banks. It added that the relaxation in savings deposit pricing may provide an earnings offset for the sector.
The brokerage said its calculation used adjusted average savings deposits based on the company’s financials and JS Global estimates. It used the average savings deposits over the last four quarters for the assessment.
JS Global report also noted that banks with a higher share of individual accounts may face limited immediate repricing benefits. Small retail deposits remain subject to the minimum deposit rate, the report said.
Estimated EPS Impact From 100bps MDR Cut
| Bank | Adjusted Avg. Saving Deposits | EPS Impact (PKR) | % of Annual EPS |
|---|---|---|---|
| BAHL | 652,765 | 2.8 | 9% |
| HBL | 951,295 | 3.0 | 6% |
| AKBL | 327,540 | 1.1 | 5% |
| ABL | 410,626 | 1.7 | 5% |
| MCB | 624,727 | 2.5 | 5% |
| BOP | 135,409 | 0.2 | 4% |
| HMB | 154,284 | 0.7 | 3% |
| NBP | 393,161 | 0.9 | 2% |
| UBL | 591,347 | 1.1 | 2% |
| BAFL | 251,058 | 0.4 | 2% |
