Pakistan’s banking sector posted cumulative profits of Rs671 billion in calendar year 2025, reflecting an 11% increase compared to 2024, according to a research report by Topline Securities. The earnings growth is largely attributed to a sharp decline in interest expenses, which more than offset lower interest income in a low policy rate environment, resulting in higher net interest income across the sector.
United Bank Limited (UBL) recorded the highest profit-after-tax (PAT) at Rs130 billion, setting a new record in the bank’s history. Meezan Bank Limited (MEBL) followed with Rs90.7 billion, while National Bank of Pakistan (NBP) posted Rs85 billion. In terms of year-on-year growth, NBP achieved a remarkable 227% increase in earnings, supported by higher net interest income and the impact of a one-off pension charge recognized in CY24. UBL reported 73% growth, and Bank of Punjab posted an 18% increase.
Among dividend-paying institutions, MCB Bank announced a payout of Rs36 per share, NBP Rs35, UBL Rs29.5, and Meezan Bank Rs28 per share. These dividends reflect the sector’s robust profitability despite challenges posed by low policy rates and evolving market conditions.
In terms of deposits, Habib Bank Limited (HBL) maintained the largest deposit base at Rs5.5 trillion, followed by UBL at Rs5.1 trillion and Meezan Bank at Rs3.3 trillion. UBL led in deposit growth with a 96% year-on-year increase, followed by Faysal Bank at 37% and Meezan Bank at 28%, highlighting the growing public confidence in major banking institutions.
The report indicates that declining interest expenses have been a key driver of net profitability, allowing banks to offset compressed interest income and maintain healthy margins. This trend demonstrates the sector’s resilience in a low-rate environment while benefiting from enhanced deposit mobilization and efficient cost management.
Analysts note that the performance of UBL, NBP, and Meezan Bank underscores a shift toward more strategically managed interest expense structures and stronger operational efficiency. Banks with larger deposit bases and diversified income streams have successfully navigated challenges associated with monetary easing and policy rate adjustments, ensuring sustained profitability and investor confidence.
The 2025 results also indicate a positive outlook for shareholder returns, with multiple banks offering competitive dividends and demonstrating strong capital allocation practices. These achievements reinforce the banking sector’s role as a cornerstone of Pakistan’s financial ecosystem, supporting economic activity while maintaining financial stability.
Overall, Pakistan’s banking sector has delivered a solid performance in 2025, driven by strategic interest expense management, deposit growth, and record-breaking earnings from leading banks. The sector’s continued resilience reflects its ability to adapt to evolving market dynamics, strengthen profitability, and provide stable returns to shareholders while supporting broader economic development.
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