National Bank of Pakistan (NBP) reported a profit after tax of Rs48.9 billion for the nine months ended September 30, 2026, while its total assets increased to Rs7.75 trillion. The bank’s board of directors approved the interim condensed financial statements for the period, which showed total income of Rs193.6 billion and earnings per share of Rs22.98. The results were recorded amid a lower interest-rate environment and followed an exceptionally strong comparative period in 2025, when falling policy rates supported net interest income and favourable capital-market conditions contributed to higher gains. NBP said its latest performance reflected the prevailing financial environment while demonstrating that it remained profitable and maintained a substantial capital base after distributing significant returns to shareholders.
Gross interest income declined by 6.4% year-on-year to Rs562.6 billion during the reporting period, primarily due to lower average interest rates. Income from the bank’s investment portfolio reached Rs427.1 billion, with the portfolio continuing to favour shorter-duration government securities. The cost of funds stood at Rs406.5 billion, resulting in net interest income of Rs156.1 billion. The performance of net interest income remained central to the bank’s overall earnings because interest-related activities form a major part of its business. However, the lower interest-rate environment and the comparatively strong results recorded in the previous year affected the year-on-year comparison. NBP’s results also reflected changes in investment returns and capital-market conditions, highlighting the influence of monetary policy and financial-market movements on banks’ earnings.
Non-fund income totalled Rs37.5 billion during the nine-month period. Foreign-exchange income increased by 24.3% year-on-year to Rs5.9 billion, while dividend income rose by 33.4% to Rs5.2 billion. Fee and commission income amounted to Rs17.9 billion amid lower business volumes. Capital gains declined to Rs9.8 billion from Rs13.3 billion in the corresponding period of 2025, when market conditions had been particularly favourable. Operating expenses increased by 8.8% to Rs96.8 billion, compared with a 9.3% increase in the same period last year. The slower pace of expense growth reflected continued cost management alongside inflationary pressures and investment in the bank’s capabilities. Nevertheless, the cost-to-income ratio stood at 50%, reflecting the effect of lower income on operating efficiency.
NBP’s balance sheet continued to expand, with total assets increasing by 9.7% to Rs7.753 trillion from Rs7.067 trillion at the end of December 2025. Net advances rose by 1.7% to Rs1.361 trillion, while investments at cost increased to Rs5.291 trillion, primarily through government securities. Total deposits stood at Rs4.013 trillion following the bank’s decision to rationalise certain high-cost deposits as part of its funding strategy. Core stable deposits amounted to Rs3.591 trillion, representing 89.5% of total deposits, while current accounts reached Rs1.897 trillion, equivalent to 47.3% of the deposit base. A strong proportion of stable and current deposits can help banks manage funding expenses and maintain liquidity, although the overall impact depends on deposit pricing, lending demand and broader market conditions.
During the period, the bank distributed a dividend of Rs35 per share for 2025, amounting to Rs74.5 billion. Following the payout, net assets stood at Rs470.2 billion and total eligible capital reached Rs478.2 billion. NBP reported a capital adequacy ratio of 21.12%, a Tier 1 capital ratio of 16.46% and a leverage ratio of 3.69%, with the ratios remaining above applicable regulatory requirements. Its standalone credit rating of AAA was reaffirmed by both Pakistan Credit Rating Agency and VIS Credit Rating Company. The ratings represent the highest category awarded to a bank in Pakistan by these agencies. The capital position is particularly significant given the size of the shareholder distribution, as banks must maintain sufficient capital to support their operations, absorb potential losses and comply with regulatory standards.
The Federal Government appointed Imran Sarwar as NBP’s president and chief executive officer on September 3, 2026, for a three-year term. The bank continues to serve key segments of Pakistan’s economy, including agriculture, small and medium-sized enterprises, microfinance and Islamic banking through its Aitemaad network. It is also advancing digital transformation, incorporating environmental, social and governance principles into its strategy, expanding green banking products and increasing its corporate social responsibility activities. Established in 1949, NBP remains an important institution in Pakistan’s financial system. Its latest results show continued profitability and balance sheet growth despite lower interest income and weaker capital gains compared with the previous year. Sustaining performance will depend on revenue diversification, funding efficiency, cost management and the bank’s ability to support economic activity while preserving its capital strength.
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