KARACHI: The Board of Directors of National Bank of Pakistan (“NBP” or “the Bank”) met to approve the Bank’s interim condensed financial statements for the nine-month period ended September 30, 2026.
Operating amid a lower interest-rate environment and following an exceptionally strong comparative 9M period, the Bank reported total income of Rs 193.6 billion and profit after tax of Rs 48.9 billion (earnings per share: Rs 22.98) for 9M’26. Pertinent to mention that the comparative prior year period had benefited from a reducing policy rate environment resulting in higher net interest income, and stronger capital-market gains.
Gross interest income for the period stood at Rs 562.6 billion, down 6.4 percent year on year, primarily reflecting the lower average interest-rate environment. Income from the Bank’s investment portfolio amounted to Rs 427.1 billion, with the portfolio continuing to favour shorter-duration government securities. Cost of funds stood at Rs 406.5 billion, bringing net interest income to Rs 156.1 billion.
Non-fund income totalled Rs 37.5 billion. Foreign-exchange income increased by 24.3 percent year on year to Rs 5.9 billion, while dividend income rose by 33.4 percent to Rs 5.2 billion. Fee and commission income stood at Rs 17.9 billion amid lower business volumes. Capital gains amounted to Rs 9.8 billion, compared with Rs 13.3 billion in 9M’25, when market conditions were exceptionally buoyant.
Operating expenses increased by 8.8 percent YoY to Rs 96.8 billion, a slower rate of increase than the 9.3 percent recorded in the corresponding period last year, reflecting continued cost discipline amid inflationary pressures and ongoing investment in the Bank’s capabilities.
The cost-to-income ratio stood at 50.0 percent, reflecting the impact of lower income on operating efficiency.
Total assets grew by 9.7 percent to Rs 7,753.1 billion from Rs 7,067.0 billion at year-end 2025.
Net advances increased by 1.7 percent to Rs 1,360.8 billion, while investments (at cost) rose to Rs 5,290.5 billion, primarily through government securities. As part of its deposit strategy, the Bank rationalised certain high-cost deposits, with total deposits standing at Rs 4,012.7 billion.
The deposit base continued to demonstrate a strong composition, with core sticky deposits of Rs 3,591.1 billion accounting for 89.5 percent of total deposits and current accounts of Rs 1,896.9 billion representing 47.3 percent.
During the period, the Bank distributed a dividend of Rs 35 per share for 2025, amounting to Rs 74.5 billion, delivering a significant return to shareholders. Following the payout, net assets stood at Rs 470.2 billion and total eligible capital at Rs 478.2 billion.
The Bank’s Capital Adequacy Ratio stood at 21.12 percent, with a Tier 1 capital ratio of 16.46 percent and a leverage ratio of 3.69 percent, remaining above applicable regulatory requirements. These ratios reflect the Bank’s capital position following the substantial shareholder distribution.
The Bank’s standalone credit rating of “AAA”, the highest rating awarded to a bank in Pakistan, was reaffirmed by both PACRA and VIS Credit Rating.
The Federal Government, on September 3, 2026, appointed Imran Sarwar as President & CEO for a three-year term. Commenting on the Bank’s 9M’26 performance, the President observed that NBP’s strength lies in the trust of its customers, the dedication of its people and the resilience of its balance sheet. He noted that the results reflected the prevailing interest-rate environment, while demonstrating that the Bank remained profitable, and well-capitalised, even after returning significant value to shareholders.
Copyright Business Recorder, 2026