Banking Sector Earnings Grow 11% YoY in CY25
The Pakistan Stock Exchange banking sector recorded cumulative profits of Rs 671 billion in Calendar Year 2025 (CY25), which marks an 11 percent year-on-year (YoY) increase, according to recent financial reports.
Analysts attributed this growth primarily to a notable decline in interest expenses, which helped offset the reduction in interest income amid a low policy rate environment, resulting in an overall rise in net interest income (NII).
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United Bank Limited (UBL) led the profitability charts by achieving its highest-ever profit after tax (PAT) of PKR 130 billion, followed by Meezan Bank (MEBL) with PKR 90.7 billion and the National Bank of Pakistan (NBP) with PKR 85 billion.
In terms of earnings growth, NBP exhibited an impressive 227 percent YoY increase, supported by higher net interest income, lower operating costs, and the absence of a one-off pension charge recognized in CY24. UBL posted a 73 percent YoY earnings growth, while Bank of Punjab (BOP) reported an 18 percent increase.
Dividend payouts continued to be robust, with top-paying banks in CY25 including MCB (dividend per share or DPS: PKR 36), NBP (DPS: PKR 35), UBL (DPS: PKR 29.5), and MEBL (DPS: PKR 28).
Regarding deposits, Habib Bank Limited (HBL) led the sector, holding the highest deposits at PKR 5.5 trillion, followed closely by UBL with PKR 5.1 trillion and Meezan Bank with PKR 3.3 trillion. UBL also demonstrated significant deposit growth, attaining a 96 percent YoY increase, followed by Faysal Bank Limited (FABL) at 37 percent and MEBL at 28 percent.
The sector’s overall performance reflects resilience amidst a low interest rate environment and underscores strong fundamentals. Banks have successfully managed interest expenses while sustaining solid deposit growth, indicating a stable banking landscape despite economic challenges.