NBP Shutting Down Operations in Central Asia

The National Bank of Pakistan (NBP) is set to wind down its operations in the capitals of Kyrgyzstan, Azerbaijan, and Kazakhstan in the coming weeks, as detailed in its latest annual report. This move is part of the bank’s strategy to exit unprofitable markets and focus on enhancing capital efficiency and reducing compliance risks.

The NBP’s decision aligns with a broader plan to streamline its international presence by closing branches that generate low returns. The bank had initially expanded to Bishkek, Baku, and Almaty in the 1990s to support newly independent Muslim-majority countries in establishing their banking sectors.

In 2021, NBP’s management began efforts to shut down seven overseas branches, but regulatory approvals delayed the process. The bank successfully closed its Paris and New York branches in 2024, following all necessary regulatory protocols. Notably, NBP faced penalties of $55 million in New York in 2022 and $265,000 in Paris in 2008 for regulatory breaches.

As part of its new direction, the bank is adopting a more structured risk management approach, enhancing credit management systems, and fostering a culture of accountability. Despite the closures, NBP continues to maintain a significant international presence with 21 branches worldwide.