The Board of Directors of National Bank of Pakistan “NBP” “the Bank” met yesterday to approve the interim condensed financial statements of the Bank for the half-year ended June 30, 2025.
Delivering another period of strong performance, the Bank reported a total income of PKR 157.1 Bn, reflecting an increase of PKR 58 Bn or 58.4% over PKR 99.2 Bn in H1’24. The results reflect robust contributions from both fund- based and non-fund income streams.
In a reducing interest rate environment, gross interest income stood at PKR 411 Bn, a 27.4% YoY decline versus PKR 566 Bn in the same period last year. Importantly, cost of funds dropped sharply by 43% YoY to PKR 280.3 Bn, enabling net interest income to close at PKR 130.6 Bn, marking a 76% YoY increase. Benefiting from a buoyant market environment, the Bank booked capital gains of PKR 5.3 Bn, taking total non-fund income to PKR 26.6 Bn, a 6.3% rise YoY. Dividend income was recorded at PKR 3.1 Bn versus PKR 3.0 Bn in H1’24, while fee and commission income grew by 22.3% YoY to PKR 14.7 Bn, reflecting continued strength in branch banking operations.
Operating expenses rose in line with inflationary pressures, reaching PKR 59.1 Bn, a 15.2% YoY increase from PKR 51.3 Bn in H1’24, partly reflecting ongoing investments in IT systems and infrastructure. In line with its prudent risk management approach the Bank recorded net credit loss allowance of PKR 4.8 Bn, primarily driven by loans & advances to the tune of PKR 5.7 Bn. As a result, profit before tax surged to PKR 93.2 Bn (Jun’24: PKR 0.6 Bn), while profit after tax closed at PKR 43.5 Bn (Jun’24: PKR 0.4 Bn) – the 2nd highest in the industry. Pertinent to note that H1’24 results included a one-off pensionary cost of PKR 49.0 Bn, significantly impacting the prior year’s profitability.
On the balance sheet side, total assets expanded by 7.1% YTD to PKR 7.2 Trillion, up from PKR 6.7 Trillion at YE’24. Investments (at cost) rose 9.4% to PKR 4,897.6 Bn, while gross advances contracted by 5.5% to PKR 1,580.9 Bn. Deposits stood at PKR 4,704 Bn, with a strong CASA ratio of 82.9%. Liquidity and capital buffers remained solid, with Liquidity Coverage Ratio at 216%, Net Stable Funding Ratio at 211%, and Capital Adequacy Ratio at 27.28% (YE’24: 27.80%), underscoring the Bank’s financial resilience.
This year, the Bank resumed dividend payouts, announcing a dividend of PKR 8.0 i.e. 80% per share. This step was welcomed by the market participants as the Bank’s commitment to delivering sustainable shareholder value while maintaining strong capital adequacy as a systemically important financial institution.