The Pakistan Stock Exchange banking sector reported cumulative profits of PKR 671 billion in Calendar Year 2025 (CY25), reflecting an 11% year-on-year (YoY) growth. Analysts said the earnings expansion was largely driven by a sharp decline in interest expenses, which more than offset the reduction in interest income amid a low policy rate environment, resulting in an overall increase in net interest income (NII).
On the profitability front, UBL led the charge, recording its highest-ever profit after tax (PAT) of PKR 130 billion, followed by Meezan Bank (MEBL) with PKR 90.7 billion and National Bank of Pakistan (NBP) with PKR 85 billion.
In terms of earnings growth, NBP achieved a remarkable 227% YoY increase, attributed to higher NII, lower operating expenses, and the absence of a one-off pension charge recognized in CY24. UBL posted 73% YoY earnings growth, while Bank of Punjab (BOP) recorded 18% YoY growth.
Dividend payouts remained strong, with the top-paying banks in CY25 including MCB (DPS: PKR 36/share), NBP (DPS: PKR 35/share), UBL (DPS: PKR 29.5/share), and MEBL (DPS: PKR 28/share).
In terms of deposits, HBL led the sector with the highest deposits at PKR 5.5 trillion, followed by UBL with PKR 5.1 trillion and MEBL with PKR 3.3 trillion. On the deposit growth front, UBL achieved a significant 96% YoY increase, followed by FABL (+37% YoY) and MEBL (+28% YoY).
The overall performance highlights the sector’s resilience amid a low interest rate environment and indicates strong fundamentals as banks continue to manage interest expenses effectively while maintaining robust deposit growth.
