Pakistan’s listed banks earned a combined profit of Rs 168 billion in the second quarter of 2025. This represents a 22% increase year-on-year, but a 3% decline compared to the previous quarter, according to Topline Securities.
Net interest income (NII) rose 19% annually, led by United Bank Limited (UBL), which saw a 213% increase to Rs 91 billion. National Bank of Pakistan (NBP) posted a 42% increase to Rs 61 billion, while Bank of Punjab (BOP) NII grew 158% to Rs 21 billion. Excluding these three banks, the sector’s NII declined 2% year-on-year.
Quarterly NII remained nearly stable as gains in some banks were offset by declines in others. Non-interest income increased 12% annually and 9% quarter-on-quarter to Rs 144 billion, supported by fees, commissions, and capital gains.
Individually, the highest quarterly profits were recorded by UBL (Rs 28.6 billion), MCB Bank (Rs 24.7 billion), NBP (Rs 20.9 billion), Habib Bank (Rs 17.8 billion), and MCB (Rs 14.6 billion).
UBL led annual NII growth with 213%, followed by BOP 158%, Askari Bank 68%, and NBP 42%. On a quarterly basis, BOP saw a 37.9% increase, UBL 8.3%, ABL 3.6%, MCB 3.5%, and Bank Alfalah 3.5%.
Most banks continued paying dividends in Q2 2025. Askari Bank and Bank of Khyber also announced interim dividends, with analysts expecting this trend to continue given strong profits.
BOP profits hit record levels
NBP’s total revenue in H1 2025 rose 58% to Rs 157.1 billion, compared to Rs 99.2 billion last year, though interest income fell 27.4% to Rs 411 billion due to lower interest rates. The bank announced an 80% dividend (Rs 8 per share), which the market viewed positively as it signals commitment to shareholder returns and capital sustainability. NBP’s market capitalization exceeded $1 billion.
Meanwhile, BOP approved unaudited H1 2025 results, with operating profit rising 278% to Rs 15.52 billion despite lower industry margins. The bank announced its first interim cash dividend of 10% (Rs 1 per share), while NII grew 116% to Rs 35.8 billion, reflecting strong core income growth.
