Pakistani Banks Break All Records with Rs326 Billion Profit H1 2025

Pakistani Banks have achieved an all-time high in half-year profits, surpassing previous records and demonstrating the sector’s resilience.

According to a report by Arif Habib Limited, banks listed on the Stock Exchange earned a net profit of Rs326 billion ($1.16 billion) during the first six months of 2025. This marks a 20% increase compared to the same period last year. In the second quarter alone, profits jumped 23% year-on-year to Rs160 billion.

Net Interest Income crossed the Rs1 trillion milestone, reflecting a 22% year-on-year rise. Between April and June, banks generated Rs510 billion through interest income. Non-markup income also contributed, increasing 7% to Rs255 billion during the half year.

Pakistani Banks shares soared in the stock market, delivering an impressive 70% return year-to-date. The KSE-100 index, in comparison, rose 27%. NBP led with a remarkable 148% stock price increase, followed by UBL (+111%) and AKBL (+105%).

UBL showed strong deposit growth, rising 32% to Rs4.3 trillion, while HBL maintained the country’s largest deposit base at Rs5.2 trillion. The Bank of Punjab delighted investors with its first-ever dividend of Rs1 per share. Askari Bank surprised the market by declaring a dividend after over a decade.

However, Islamic banks faced challenges. Profits fell 13% year-on-year to Rs57 billion, affected by regulatory changes and interest rate cuts.

The sector also benefited the government by contributing Rs394 billion in taxes, a 44% increase from the previous year, thanks to a higher effective tax rate.

Experts say the performance of Pakistani Banks reflects strong operational efficiency, growing interest income, and investor confidence. The sector’s momentum is expected to continue, despite challenges faced by Islamic banks.

In other news read more about Iqra Kanwal, Anas Ali Face NCCIA Probe Over Gambling App Scandal – Full Story Here!