National Bank of Pakistan (PSX: NBP) has posted an exceptional performance for the half-year ended June 30, 2025, reporting a profit after tax of Rs43.08 billion and earnings per share of Rs20.05. This marks an extraordinary increase of 4,480.64 percent compared to Rs940.44 million in the same period last year, underscoring a dramatic turnaround in the bank’s operations.
The bank’s consolidated statement of profit and loss reveals that net mark-up and interest income surged 75.43 percent year-on-year to Rs130.63 billion, up from Rs74.46 billion, despite a decline in gross mark-up earned and expensed. Interest earned fell by 27.42 percent to Rs410.94 billion, while interest expenses dropped 42.99 percent to Rs280.31 billion, reflecting improved asset-liability management and cost efficiency.
Non-mark-up income also contributed to the bank’s growth, rising 8.03 percent to Rs29.78 billion. Fee and commission income climbed 34.27 percent to Rs18.24 billion, supported by expanding transactional and advisory services. Dividend income recorded a modest increase of 2.49 percent to Rs3.21 billion, whereas foreign exchange income declined 15.62 percent to Rs3.53 billion. Gains on securities decreased by 20.77 percent to Rs4.63 billion, while other income surged 682.56 percent to Rs767.46 million, offsetting losses from derecognition of financial assets at amortised cost, which amounted to Rs655.45 million.
The bank’s operational efficiency was reflected in total non-mark-up expenses, which rose 16.72 percent to Rs61.18 billion, with operating expenses accounting for Rs61.15 billion of the total. Despite this increase, profit before credit loss allowance and provisions doubled to Rs99.22 billion from Rs49.61 billion in the same period last year. Credit loss provisions stood at Rs5.95 billion, compared to a reversal of Rs1.03 billion last year, reflecting prudent risk management in a challenging macroeconomic environment.
Profit before taxation surged by 5,649.82 percent to Rs93.27 billion, while taxation increased to Rs50.19 billion, representing a 7,262.72 percent rise. Of the total profit, Rs42.66 billion was attributable to equity holders of the bank, and Rs414.84 million to non-controlling interest, highlighting robust shareholder returns and capital allocation.
The half-year results demonstrate NBP’s resilience and strategic execution, balancing growth in interest income, fee-based services, and cost control measures, while navigating volatility in foreign exchange and securities markets. Analysts point to the significant improvement in EPS and net profit as a signal of operational strength and effective risk management across both conventional and Islamic banking windows.
NBP’s performance also reflects broader improvements in Pakistan’s banking sector, including disciplined asset-liability management, diversification of income streams, and a focus on expanding core banking services. The surge in fee and commission income, in particular, highlights the bank’s emphasis on leveraging service-based revenue and enhancing client engagement.
Overall, the half-year results for FY25 position NBP as a leading performer among Pakistan’s top-tier banks, demonstrating its capacity to generate substantial profits while maintaining a balanced approach to risk, efficiency, and shareholder value.