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Pakistan’s banking sector has achieved an unprecedented milestone, posting the highest-ever half-year profit in history with a staggering Rs326 billion ($1.16 billion) net earnings during the first six months of 2025.
According to a report by Arif Habib Limited, the sector’s performance reflected a 20% year-on-year growth, breaking all previous records. The momentum was especially strong in the second quarter, where profits surged to Rs160 billion, up 23% compared to the same period last year.
Key Highlights of Banking Sector Performance H1 2025
| Indicator | H1 2025 | YoY Change |
| Net Profit | Rs326 bn | +20% |
| Net Interest Income | Rs1.01 trn | +22% |
| Non-Markup Income | Rs255 bn | +7% |
| Q2 Profit | Rs160 bn | +23% |
| Taxes Paid | Rs394 bn | +44% |
Among individual banks, NBP saw a 148 percent surge in its stock price, while UBL achieved 32 percent growth in deposits, reaching Rs4.3 trillion. HBL maintained its leading position with the country’s largest deposit base at Rs5.2 trillion. The Bank of Punjab announced its first-ever dividend of Rs1 per share, whereas Askari Bank declared a payout for the first time in more than a decade.
Islamic banks, however, faced a setback as profits dropped 13 percent year-on-year to Rs57 billion, largely due to interest rate cuts and regulatory adjustments.
The government also benefited significantly from the banking sector’s remarkable earnings. Taxes paid by the sector jumped 44 percent year-on-year to Rs394 billion, supported by a higher effective tax rate.
This performance not only highlights the strength of Pakistani banks but also underlines their critical role in driving economic growth and strengthening financial stability.
