Market capitalisation exceeds USD1bn: NBP posts Rs43.5bn PAT for H1CY25

KARACHI: National Bank of Pakistan (NBP) reported a strong turnaround in its half-year results, posting a profit after tax of Rs. 43.5 billion for the six months ended June 30, 2025, compared to just Rs. 0.4 billion in the same period last year. The robust performance, approved by the bank’s Board of Directors in a meeting held Thursday, was driven by higher net interest income, improved non-fund income streams, and controlled credit losses.

The bank’s total income jumped 58 percent year-on-year to Rs. 157.1 billion, against Rs. 99.2 billion in the corresponding period of 2024. Gross interest income fell 27.4 percent YoY to Rs. 411 billion due to a declining interest rate environment, but this was offset by a steep 43 percent drop in the cost of funds to Rs. 280.3 billion. As a result, net interest income surged 76 percent to Rs. 130.6 billion.

On the non-fund side, income rose 6.3 percent to Rs. 26.6 billion, supported by capital gains of Rs. 5.3 billion and fee and commission income of Rs. 14.7 billion, up 22.3 percent YoY. Dividend income was recorded at Rs. 3.1 billion.

Operating expenses climbed 15.2 percent to Rs. 59.1 billion, reflecting inflationary pressures and ongoing investments in technology and infrastructure. NBP set aside Rs. 4.8 billion in credit loss allowances, mainly against loans and advances. Even after these charges, profit before tax reached Rs. 93.2 billion, a dramatic recovery from just Rs. 0.6 billion in H1 2024. Last year’s results had been weighed down by a one-off pensionary cost of Rs. 49 billion.

On the balance sheet, NBP’s total assets grew 7.1 percent year-to-date to Rs. 7.2 trillion. Investments rose 9.4 percent to Rs. 4.9 trillion, while gross advances contracted 5.5 percent to Rs. 1.58 trillion. Deposits stood at Rs. 4.7 trillion, with a healthy CASA ratio of 82.9 percent. The bank’s liquidity and capital positions remained strong, with a Liquidity Coverage Ratio of 216 percent, Net Stable Funding Ratio of 211 percent, and a Capital Adequacy Ratio of 27.28 percent. NBP resumed dividend payouts this year, announcing an interim dividend of Rs. 8.0 per share (80 percent). The move was welcomed by investors, underscoring the bank’s confidence in its financial resilience and growth trajectory.

The bank’s market capitalization has surged to around Rs. 310 billion which is over USD1 billion, making it the fifth Pakistani bank to join the “Billion Dollar Club.” Since mid-2024, NBP’s market value has climbed 230 percent. International recognition has also followed, with S&P ranking NBP among the top 10 best-performing banks in Asia Pacific in 2024.

Islamic banking remains a key growth driver, with assets of its Aitemaad Islamic Banking division rising 35 percent YoY to Rs. 448 billion. Recent initiatives include the launch of NBP Aitemaad Advance Salary, a Shariah-compliant variant of its flagship product, and the Amirah PayPak Pink Debit Card, Pakistan’s first debit card designed exclusively for women.

NBP President & CEO Rehmat Ali Hasnie attributed the performance to the commitment of employees and the bank’s strategic transformation, emphasizing digitalization, product innovation, and financial inclusion as central pillars of the bank’s future strategy.

Founded in 1949, NBP remains the country’s largest lender to the agriculture sector, with an outstanding loan book of around Rs. 120 billion. The bank continues to embed ESG principles into its operations, expanding green banking products, CSR initiatives, and environmental and social risk management systems.

Copyright Business Recorder, 2025