The National Bank of Pakistan (NBP) has announced its financial results for the calendar year 2025, unveiling its highest-ever cash dividend of Rs35 per share, backed by record-breaking profitability and notable operational strength. The performance underscores a year of strong balance sheet management and improved efficiency metrics for one of the country’s largest commercial banks.
According to the bank’s latest financial statement, NBP reported record earnings of Rs85 billion for CY25, translating into earnings per share (EPS) of Rs39.9. This represents a remarkable 227 percent year-on-year increase, reflecting a substantial turnaround in profitability. On a quarterly basis, the bank posted a profit of Rs19.3 billion, down 13 percent compared to the same period last year and 16 percent lower on a quarter-on-quarter basis, largely due to seasonal patterns and cost adjustments.
The sharp rise in annual profitability was primarily fueled by a strong expansion in net interest income (NII) alongside a significant reduction in operating expenses. NBP’s NII surged 45 percent year-on-year to Rs248.6 billion. This growth was mainly driven by a 42 percent decline in interest expenses, which more than compensated for a 28 percent reduction in interest income, ultimately delivering a net positive impact on overall earnings.
Non-funded income recorded a marginal decline of 1 percent year-on-year. The dip was largely attributed to lower gains on securities, which fell 52.1 percent to Rs13.5 billion, and a decrease in dividend income, which slipped 11.7 percent to Rs5.3 billion. However, these declines were partially offset by solid growth in other income streams. Fee income rose 18.9 percent to Rs34.7 billion, while foreign exchange income registered a sharp 167.8 percent increase, reaching Rs15.8 billion, reflecting improved treasury and transactional performance.
On the expense front, the bank reported a significant 28 percent year-on-year reduction in operating expenses, bringing the total down to Rs129.3 billion. This efficiency gain substantially improved the cost-to-income ratio, which declined to 41 percent in CY25 from 74.5 percent in CY24. The previous year’s ratio had been elevated due to a one-off pension charge, making the current year’s comparison particularly noteworthy in terms of normalized cost management. Meanwhile, provisioning expenses increased to Rs9.2 billion, compared to Rs4.5 billion a year earlier, indicating a more cautious stance on risk coverage and asset quality.
NBP’s effective tax rate stood at 52 percent in CY25, slightly lower than 53.8 percent recorded in CY24, contributing marginally to the bottom line expansion.
In terms of balance sheet dynamics, deposits grew 15 percent year-on-year to reach Rs4.4 trillion, highlighting continued customer confidence and liquidity strength. Investments rose 7 percent to Rs4.9 trillion, while advances declined 5 percent to Rs1.3 trillion. As a result, the investment-to-deposit ratio (IDR) stood at 111 percent, and the advances-to-deposit ratio (ADR) settled at 30.2 percent for the year.
Market observers view the record dividend declaration and earnings milestone as a reflection of strengthened financial fundamentals, enhanced cost discipline, and improved asset-liability management. With solid deposit growth, a healthier cost structure, and diversified income streams, NBP appears positioned to maintain operational stability and performance momentum in the year ahead.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.