The Bank of Khyber (PSX: BOK) reported an impressive 60.87% increase in net profit for the year ended December 31, 2025, reaching Rs5.82 billion, up from Rs3.62 billion in 2024. This growth reflects the bank’s strong operational performance, disciplined cost management, and diversified income streams, particularly from non-markup activities.
Rewarding its shareholders, the bank announced a final cash dividend of Rs1.70 per share (17%), in addition to the interim dividend of Rs1.50 per share (15%) already paid earlier in the year. Earnings per share (EPS) rose significantly by 60.90% to Rs5.02 compared to Rs3.12 in the previous year, reflecting robust profitability growth.
Total income for the year increased by 26.58% year-on-year to Rs23.13 billion from Rs18.27 billion, supported by strong contributions from both markup/interest income and non-markup income. Markup/interest income decreased from Rs65.22 billion in 2024 to Rs52.23 billion in 2025 due to market conditions, but interest expenses also fell by 31.80%, leading to net markup/interest income growth of 15.21% to Rs19 billion.
Non-markup income surged by 132% to Rs4.13 billion, driven by substantial gains on securities of Rs2.33 billion, up over 1,200% from Rs177 million in 2024. Fee and commission income, foreign exchange earnings, and other miscellaneous income also contributed to the increase, while dividend income declined due to lower payouts from equity investments. The share of profit from associates rose 37.61% to Rs15.38 million, further enhancing the bank’s diversified income portfolio.
Operating expenses increased by 11.26% to Rs11.73 billion, reflecting expanded business activity, while other non-markup charges fell sharply by 98.7% to a negligible Rs0.29 million. Profit before taxation surged 50.98% to Rs12.28 billion from Rs8.14 billion in the previous year. After accounting for taxation of Rs6.47 billion, which increased 43.06%, the bank’s net profit after tax still recorded strong growth, underlining effective management of costs and income streams.
The Bank of Khyber’s financial results highlight its ability to balance growth in income with disciplined expense management, contributing to enhanced shareholder returns. Analysts noted that the significant increase in non-markup income, particularly from securities and foreign exchange, was a key driver behind the bank’s profitability. The robust results also reinforce investor confidence in the bank’s strategic approach, focusing on expanding core banking operations while exploring non-interest income avenues. By maintaining operational efficiency and a diversified income base, the Bank of Khyber continues to demonstrate resilience in a competitive banking sector and a commitment to maximizing value for its shareholders.
Overall, the 2025 performance reflects the bank’s sustained focus on profitability, risk management, and strategic growth, positioning it well for continued expansion in the coming years.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem