KARACHI: Pakistan’s listed banks posted a combined profit of Rs168 billion in the second quarter of 2025, up 22pc year-on-year but down 3pc from the previous quarter, according to a report by Topline Securities.

The sector’s net interest income (NII) rose 19pc YoY. United Bank Ltd (UBL) recorded the sharpest growth, with NII up 213pc to Rs91bn, followed by National Bank of Pakistan (NBP) with a 42pc increase to Rs61bn, and Bank of Punjab (BoP) with a 158pc jump to Rs21bn. Excluding these three, sector-wide NII declined 2pc YoY.

On a Q-on-Q basis, NII remained largely flat as gains at some banks were offset by declines at others. Non-interest income rose 12pc YoY and 9pc QoQ to Rs144bn, supported by higher fee and commission income and capital gains.

Among individual banks, UBL posted the highest quarterly earnings of Rs28.6bn, followed by Meezan Bank at Rs24.7bn, NBP at Rs20.9bn, Habib Bank at Rs17.8bn, and MCB Bank at Rs14.6bn.

In terms of NII growth, UBL led with 213pc YoY, followed by BoP at 158pc, Askari Bank at 68pc, and NBP at 42pc. On a QoQ basis, BoP recorded a 37.9pc increase, followed by UBL (8.3pc), ABL (3.6pc), Meezan Bank (3.5pc), and Bank Alfalah (3.5pc).

Most banks maintained dividend payouts in 2Q2025. Askari Bank and Bank of Khyber also announced interim dividends, with analysts expecting the trend to continue given strong profitability.

NBP income up, BoP profit surges

National Bank of Pakistan’s total income for the first half of 2025 surged 58pc to Rs157.1bn, compared to Rs99.2bn in the same period last year. Gross interest income, however, declined 27.4pc to Rs411bn amid a falling interest rate environment.

The bank announced a dividend of Rs8 per share (80pc), marking the resumption of payouts. The step was welcomed by the market as a sign of commitment to shareholder returns while maintaining capital adequacy. NBP’s market capitalisation also crossed the $1bn mark.

Separately, the Bank of Punjab’s board approved un-audited results for the first half of 2025, reporting operating profit of Rs15.52bn, up 278pc from the same period last year, despite declining industry margins.

For the first time in its history, the bank announced an interim cash dividend of 10pc (Re1 per share). NII rose 116pc to Rs35.8bn, reflecting strong growth in core earnings.

Published in Dawn, August 30th, 2025