NBP Profit Rises 9% in 4QCY25

By Aftab Ahmed • February 25, 2026

National Bank of Pakistan posted Rs19.2bn quarterly profit and declared a record Rs35 per share dividend, driven by lower expenses and tax relief.

National Bank of Pakistan reported unconsolidated net earnings of Rs19.2bn for 4QCY25, up 9% year-on-year, supported by sharply lower non-interest expenses and a reduced effective tax rate.

Earnings per share stood at Rs9.1 for the quarter. The bank declared a cash dividend of Rs35 per share for CY25, its highest ever, translating into a payout ratio of 87.5%.

Interest earned during 4QCY25 clocked in at Rs179.8bn, down 28% from a year earlier. Interest expense fell more sharply by 35% YoY to Rs122.5bn, reflecting the lower interest rate environment.

As a result, net interest income declined 8% YoY to Rs57.2bn in the quarter. The contraction largely mirrors the impact of monetary easing on asset yields.

Non-interest income stood at Rs21.8bn, down 7% YoY. The decline was attributed to lower net gains on securities and recognition of a 10% fair value loss on Pakistan International Airlines restructuring.

Non-interest expenses dropped significantly to Rs35.8bn in 4QCY25, down 63% YoY. The base was elevated in 4QCY24 due to a Supreme Court order mandating a one-time pension payment to employees.

Provisioning charges rose to Rs7.1bn in the quarter, compared with Rs2.5bn in the same period last year. The effective tax rate declined to 47% from 51% a year earlier, easing pressure on the bottom line.

For the full year CY25, National Bank of Pakistan reported net earnings of Rs85.9bn, or Rs40 per share. This compares with Rs26.8bn, or Rs12.6 per share, in CY24, reflecting a 3.2 times year-on-year increase.

The sharp annual growth was primarily driven by a 45% YoY rise in net interest income to Rs248.5bn. At the same time, non-interest expenses fell 30% YoY to Rs124.8bn, strengthening operating leverage.

The strong earnings performance came despite a 255% YoY increase in provisioning charges to Rs8bn in CY25, compared with Rs2.2bn in the previous year.

The record dividend declaration underscores management confidence in capital adequacy and earnings sustainability. National Bank of Pakistan’s improved profitability in CY25 positions it strongly amid evolving monetary conditions and rising provisioning requirements in the banking sector.