KARACHI: National Bank of Pakistan (NBP) delivered a resilient performance in the first half of calendar year 2026, posting a profit before tax of Rs67.3 billion and a profit after tax of Rs32.4 billion, translating into earnings per share of Rs15.23 for the half year ended June 30, 2026.
The Board of Directors of National Bank of Pakistan (NBP) has approved the interim condensed financial statements for the half-year ended June 30, 2026 in it meeting held on August 27, 2026.
According to company announcement, NBP continued to demonstrate resilient financial performance and disciplined balance sheet management during the first half of 2026, navigating an evolving interest rate environment while maintaining strong liquidity, funding and capital positions.
With 15 percent growth, NBP generated gross interest income of Rs361.7 billion in the first half of calendar year 2026. Non-mark-up income also advanced, rising 3.8 percent year-on-year to Rs27.6 billion the back of a strong showing across multiple streams. Foreign exchange income grew impressively to Rs5.4 billion from Rs3.5 billion, while dividend income surged 30 percent to Rs4.1 billion, underscoring the quality and diversification of the Bank’s earnings base.
Operating expenses increased by approximately 11 percent YoY to Rs65.5 billion, primarily reflecting targeted investments in digital capabilities and technology infrastructure to strengthen operating capacity, resilience and scalability. Proactive risk management remained a key strength, with recoveries against non-performing loans, and credit loss allowances recording a net reversal of Rs5.3 billion during 1HCY26, compared to a charge of Rs4.8 billion in the corresponding period last year. Specific Non-Performing Loan (NPL) provision coverage stood at 93 percent under applicable SBP regulations, while the Bank continues to maintain strong IFRS 9 Expected Credit Loss coverage.
The Bank’s total assets increased by 10.9 percent during the first half of 2026 to Rs7.8 trillion, compared to Rs7.07 trillion as of December 31, 2025. Investments increased to Rs5.67 trillion, with the portfolio strategically positioned towards shorter-maturity government securities, providing flexibility to capitalise on emerging repricing opportunities. Gross advances stood at Rs1.58 trillion, compared to Rs1.61 trillion at year-end 2025, with the 2.4 percent decline primarily reflecting seasonal factors in the Commercial and SME segments. Meanwhile, Islamic financing continued its growth trajectory, increasing by 27 percent during the first half to Rs312.8 billion.
Total deposits stood at Rs4.2 trillion as of June 30, 2026. Current deposits of Rs2.07 trillion represented 49.2 percent of total deposits, while the overall CASA base stood at Rs3.53 trillion.
Commenting on the performance Abdul Wahid Sethi, SEVP/CFO, additional acting charge of President / CEO NBP, expects the operating environment to gain further traction during the second half of 2026, supported by easing geopolitical tensions, improving business confidence and a gradual recovery in economic activity.
He said that with its strong liquidity and funding franchise, robust capital position and disciplined risk management framework, the Bank is well positioned to support and capitalise on this recovery. NBP will continue to pursue risk-calibrated asset growth and deepen customer relationships, with stronger advances and improving business activity expected to provide greater momentum to its core franchise through the year-end, he added.
Copyright Business Recorder, 2026
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