Good Six-Month Financial Results
The interim condensed financial statements for the half-year ended June 30, 2025, have been approved by the Board of Directors of the National Bank of Pakistan (NBP). NBP achieved a spectacular performance, with total earnings increasing to PKR 157.1 billion, a 58.4 percent rise from PKR 99.2 billion in H1 2024.
Income and Profitability
Gross interest income was PKR 411 billion, and this represented a 27.4% YoY decrease owing to the decreasing interest rate climate. A sudden 43% YoY decline in cost of funds to PKR 280.3 billion, however, allowed the net interest income to shoot up by 76% YoY to PKR 130.6 billion. The growth of non-fund income also stood at 6.3% compared to the previous year to PKR 26.6 billion, with capital gains increasing by 5.3 billion and the growth in the fee income increasing by 22.3% to PKR 14.7 billion.
The operating expenses increased to PKR 59.1 billion due to inflationary pressures and investments in IT. Although costs increased, profit before tax rose by PKR 93.2 billion compared to PKR 0.6 billion the previous year; profit after tax was PKR 43.5 billion, the second-highest in the industry. The incredible growth indicates the normalization of one-off pension expenses, which were recorded in H1 2024.
Balance Sheet Growth and Capital Adequacy
The total assets increased by 7.1% year-to-date to PKR 7.2 trillion, compared to PKR 6.7 trillion at the year-end 2024. Investments increased by 9.4 per cent to PKR 4,897.6 billion, whereas gross advances had declined by 5.5 per cent to PKR 1,580.9 billion. Deposits closed at PKR 4,704 billion and were backed by a high CASA ratio of 82.9%. The buffers of NBP were high; its Liquidity Coverage Ratio was 216, it had a Net Stable Funding Ratio of 211, and a Capital Adequacy Ratio of 27.28, which reinforced its stability.
Dividend and Market Recognition
The Bank declared a dividend payout of PKR 8.0 per share (80%), reinstating returns to shareholders while maintaining high capital adequacy. The shift was embraced by the market players as an indicator of viable value development. Since mid-2024, the market capitalization of NBP has increased by 230 percent, reaching the US$1 billion mark in August 2025, making it the fifth listed bank in the Pakistan Stock Exchange to join the Billion Dollar Club.
It was also recognized globally, as in 2024, S&P ranked NBP as one of the 10 best-performing Asia Pacific banks. Both PACRA and VIS reaffirmed the Bank’s AAA (long-term) and A1+ (short-term) ratings in June 2025.
Strategic Focus: Inclusion, Innovation, and ESG
NBP is the largest lender to the agricultural industry, with a loan book of PKR 120 billion outstanding; it has been pursuing its mission of supporting priority sectors. The Bank is entrenching ESG in the strategy, creating the Environmental and Social Management System, and scaling up green banking and CSR.
One of the most rapidly growing segments is the Islamic banking, where Aitemaad Islamic Banking assets have grown at 35% YoY to PKR 448 billion. NBP Aitemaad Advance Salary was a Shariah-compliant product that increased retail product offerings. In August 2025, the Bank launched the Amirah PayPak Pink Debit Card, the first PayPak debit card in Pakistan, specifically designed for women and offering unique benefits that empower them to achieve financial independence.
Leadership Remarks
President and CEO Rehmat Ali Hasnie praised the efforts of employees on the firm’s performance of the Bank. He underscored that NBP is undergoing a significant organizational and technological transformation aimed at digitalization, innovation, and inclusion. He reiterated the Bank’s inclusive mission in line with its long-term tagline: Ek Azm, Ek Pehchan, National Bank Aur Pakistan.
Conclusion
The H1 2025 performance of NBP is indicative of financial strength, strategic resilience, and an increasing investor confidence. As its assets continue to grow, market capitalization exceeds $ 1 billion, and the organization continues to emphasize ESG, digital innovation, and inclusion, NBP can be regarded as one of the major drivers of Pakistan’s financial sector development.
