Bank of Khyber (PSX: BOK) has announced an impressive financial performance for the first half of 2025, with profit after tax soaring by 117.09 percent to Rs 3.37 billion compared to Rs 1.55 billion in the same period last year. The results reflect the bank’s operational efficiency, enhanced income streams, and strengthened asset quality, positioning it as one of the standout performers in Pakistan’s banking sector this year.
Earnings per share (EPS) more than doubled to Rs 2.91 in H1 2025, up from Rs 1.34 in H1 2024, marking a 117.16 percent increase. This surge significantly surpassed market expectations and highlighted the bank’s ability to generate sustainable shareholder value despite economic headwinds.
Total income for the half-year rose by 43.04 percent, reaching Rs 12.27 billion compared to Rs 8.58 billion in the previous year. A breakdown of the income statement shows that net mark-up and interest income expanded by 28.16 percent to Rs 9.85 billion. Non-mark-up income delivered exceptional growth of 171.10 percent, climbing to Rs 2.42 billion. This boost was largely supported by substantial gains from securities, contributing Rs 1.50 billion, alongside growth in fee and commission income.
Operating expenses grew modestly by 14.10 percent, reaching Rs 5.69 billion. This cost discipline ensured that expense growth remained well below revenue growth, thereby enhancing profitability. The bank also reported other income growth of 30.16 percent, adding further depth to its earnings base.
A major highlight of the financial results was the reversal of credit loss provisions. Bank of Khyber reported a credit loss reversal of Rs 618.5 million during H1 2025, compared to a provision of Rs 108.1 million in the same period last year. This shift indicates marked improvement in asset quality, strong risk management practices, and resilience in the lending portfolio.
In terms of profitability, the bank posted Rs 7.19 billion profit before tax, a growth of 106.69 percent from Rs 3.48 billion last year. After accounting for taxation, which nearly doubled to Rs 3.83 billion, the net result stood at Rs 3.37 billion.
The bank’s performance reflects a strong focus on income diversification, balance sheet optimization, and prudent cost management. By successfully navigating a challenging economic environment while maintaining robust asset quality, Bank of Khyber has set a benchmark for peer institutions in the domestic banking industry.
Market analysts view these results as a sign of the bank’s growing competitiveness and long-term potential, especially given its ability to expand earnings while keeping costs in check. The substantial improvement in non-mark-up income and securities portfolio gains also highlight the bank’s strategic moves in strengthening revenue resilience.
As the banking industry continues to adapt to digital transformation, evolving regulatory frameworks, and shifting customer expectations, Bank of Khyber’s strong half-yearly results underline its capacity to scale and sustain growth. Investors and stakeholders will now watch how the bank builds on this momentum in the second half of 2025.