Pakistani banks listed on the Pakistan Stock Exchange (PSX) have posted record-breaking earnings for the first half of 2025. As per data shared by Arif Habib Limited, the collective profit after tax (PAT) of KSE-100 financial institutions reached Rs326 billion (USD 1.16 billion) in 1HCY25, reflecting a 19% jump compared to last year.
The April–June quarter alone generated Rs160 billion, showing a 23% YoY increase, driven by balance sheet expansion and diverse income sources.
Net Interest Income (NII) remained the strongest contributor, hitting Rs1 trillion in the six-month period, up 22% YoY, while the second quarter added Rs510 billion, marking a 20% rise. Additionally, non-markup earnings improved to Rs255 billion (+7% YoY), with 2QCY25 contributing Rs132 billion (+9% YoY).
Even with operating expenses climbing 18% to Rs553 billion, the industry preserved its efficiency, maintaining a cost-to-income ratio of 46%, slightly higher than 45.4% recorded in the same period last year.
On the stock market front, Pakistani banks delivered a stunning 70% year-to-date return in 2025, well above the KSE-100 Index growth of 27%. Among top performers, National Bank of Pakistan (NBP) surged 148% in share price, United Bank Limited (UBL) gained 111%, and Askari Bank (AKBL) advanced 105%, fueled by robust profitability and dividend payouts.
Read More: BOP Reports 278% Growth in Operating Profit During 1H-2025, Approves 10% Cash Dividend
Deposit growth also hit historic highs, with UBL expanding 32% YoY to Rs4.3 trillion, while Habib Bank Limited (HBL) retained the largest base at Rs5.2 trillion. Investor trust was further strengthened by dividend declarations from Bank of Punjab (BOP) and AKBL.
On the other hand, Islamic banks faced a profitability drop of 13% YoY, with earnings down to Rs57 billion in 1HCY25 due to reduced interest margins and regulatory adjustments effective from January 2025. In contrast, conventional banks enjoyed a strong 29% YoY growth in profits despite a lower interest rate environment.
The overall contribution of Pakistani banks to the national exchequer rose significantly, as they paid Rs394 billion in taxes during the first half of 2025—representing a 44% YoY surge. This increase came with a higher effective tax rate of 54%, compared to 48% in the same period of 2024.
