The National Bank of Pakistan (NBP), one of the largest and oldest financial institutions in the country, delivered a remarkable financial performance in the third quarter of 2025, posting a profit after tax (PAT) of Rs23.26 billion. This represents an extraordinary increase of over 650% compared to the Rs3.09 billion earned in the same period last year, reflecting the bank’s ability to sustain profitability amid a changing interest rate environment and evolving economic conditions.
According to the financial results released to the Pakistan Stock Exchange (PSX), NBP’s earnings per share (EPS) surged to Rs10.83 in 3QCY25 from Rs1.39 in 3QCY24. The sharp rise in profitability was attributed to stronger net interest margins, higher investment income, and improved cost management. Market analysts noted that this was NBP’s highest-ever quarterly profit, supported by both core and non-core income growth.
Despite a decline in total mark-up or return earned, the bank’s profitability surged due to a sharper drop in interest expenses. The mark-up or return earned fell nearly 30% to Rs190.35 billion in 3QCY25, compared to Rs272.8 billion in the corresponding period last year. However, interest expenses decreased even more significantly—by 46%—to Rs129.63 billion from Rs237.88 billion a year earlier. This shift helped boost net mark-up or interest income to Rs60.71 billion, up 74% from Rs34.97 billion in the same quarter of the previous year, reflecting stronger balance sheet management and effective deployment of low-cost deposits.
NBP also saw notable growth in non-mark-up income, driven by improved fee-based services and gains on securities. Fee and commission income rose nearly 10% year-on-year to Rs6.56 billion in 3QCY25 from Rs5.99 billion a year earlier. The bank’s foreign exchange income remained steady at Rs1.23 billion, demonstrating consistent performance in trade and remittance-related operations.
A key driver of earnings growth was a substantial increase in gains on securities, which surged 76% to Rs8.22 billion in 3QCY25 compared to Rs4.67 billion last year. This reflected effective treasury operations and timely portfolio rebalancing amid easing yields. The bank also reported a notable increase in share of profit from associates, rising to Rs326.2 million compared to Rs25.6 million in the same period last year, further supporting bottom-line growth.
Operating expenses for the quarter stood at Rs30.94 billion, reflecting the bank’s controlled cost base despite inflationary pressures and ongoing investment in digital transformation and regulatory compliance. Profit before taxation climbed sharply by 243% to Rs49.93 billion, compared to Rs14.56 billion in 3QCY24.
NBP’s tax payments also rose significantly, amounting to Rs26.67 billion during the quarter compared to Rs11.48 billion a year earlier, marking a 132% increase. After taxation, the bank closed the quarter with a net profit of Rs23.26 billion, a strong indicator of operational strength and improved financial resilience.
The exceptional quarterly results demonstrate NBP’s strategic focus on balance sheet optimization, prudent risk management, and operational efficiency. With a diversified income mix and stronger treasury performance, the bank continues to reinforce its position as a key player in Pakistan’s banking sector.
Analysts anticipate that NBP’s ongoing investment in technology and its focus on expanding financial inclusion will sustain growth momentum in the coming quarters, especially as digital banking and low-cost deposit mobilization continue to reshape the financial landscape.
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