KARACHI – The Board of Directors of National Bank of Pakistan (NBP) met the other day to approve the interim condensed financial statements of the bank for the half-year ended June 30, 2025. Delivering another strong performance, the bank reported a total income of Rs157.1 billion, reflecting an increase of Rs58b or 58.4% over Rs99.2b 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 Rs411b, a 27.4% YoY decline versus Rs566b in the same period last year. Importantly, cost of funds dropped sharply by 43% YoY to Rs280.3b, enabling net interest income to close at Rs130.6b, marking a 76% YoY increase. Benefiting from a buoyant market environment, the bank booked capital gains of Rs5.3b, taking total non-fund income to Rs 26.6b, a 6.3% rise YoY. Dividend income was recorded at Rs3.1b versus Rs3.0b in H1’24, while fee and commission income grew by 22.3% YoY to Rs14.7b, reflecting continued strength in branch banking operations.
Operating expenses rose in line with inflationary pressures, reaching Rs59.1b, a 15.2% YoY increase from Rs51.3b 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 Rs4.8b, primarily driven by loans & advances to the tune of Rs5.7b. As a result, profit before tax surged to Rs93.2b (Jun’24: Rs0.6b), while profit after tax closed at Rs43.5b (Jun’24: Rs0.4b) – the 2nd highest in the industry. Pertinent to note that H1’24 results included a one-off pensionary cost of Rs49.0b, significantly impacting the prior year’s profitability. On the balance sheet side, total assets expanded by 7.1% YTD to Rs7.2 trillion, up from Rs6.7 trillion at YE’24. Investments (at cost) rose 9.4% to Rs 4,897.6b, while gross advances contracted by 5.5% to Rs1,580.9b. Deposits stood at Rs4,704b, 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 Rs 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. Reflecting increasing investor confidence, S&P ranked NBP among the top 10 best-performing Asia Pacific banks in 2024. The bank’s market capitalisation has since risen to approximately Rs 310b, marking an exceptional 230% increase since mid-2024. In early August this year, NBP entered the elite “Billion Dollar Club,” becoming the fifth listed bank on the Pakistan Stock Exchange to cross the coveted $1 billion market capitalisation. NBP continues to hold the highest credit ratings of AAA (long-term) and A1+ (short-term), reaffirmed by both PACRA and VIS in June 2025.
As the largest lender to the agriculture sector, with an outstanding loan book of ~Rs 120b, NBP continues to advance its mandate of serving priority segments of the economy. The bank is embedding ESG principles into its strategy, developing an Environmental & Social Management System, expanding green banking products, and scaling up CSR initiatives.
Islamic banking remains one of NBP’s fastest-growing segments. Assets of Aitemaad Islamic Banking rose by 35% YoY to Rs 448b, from Rs334b at YE’24. On the retail side, the launch of NBP Aitemaad Advance Salary, a Shariah-compliant version of the bank’s flagship product, marked a key milestone. In celebration of Pakistan’s 78th Independence Day, NBP introduced the Amirah PayPak Pink Debit Card, the nation’s first PayPak debit card exclusively for women, offering financial independence, special benefits, and Takaful protection.
Commenting on the results, Rehmat Ali Hasnie, President & CEO of NBP, praised the commitment of employees in delivering strong financial outcomes and advancing the Bank’s strategic transformation. He added “NBP is undergoing a major organizational and technological transformation, with emphasis on digitalization, product innovation, and financial inclusion. As the Nation’s Bank, we remain committed to enhancing service quality, diversifying our reach, and broadening financial access across Pakistan.”
Since its establishment in 1949, NBP has remained dedicated to expanding financial inclusion and supporting the country’s socio-economic development. This strong sense of responsibility continues to guide the bank’s inclusive mission and reinforces its enduring commitment to its tagline: Ek Azm, Ek Pehchan – National Bank Aur Pakistan.
