National Bank of Pakistan reported a 24% decline in profit after tax for the half year ended June 30, 2026, as lower banking income and a shift in credit loss provisions weighed on its financial performance. The bank’s profit after taxation stood at Rs32.84 billion during the first half of calendar year 2026, compared with Rs43.08 billion recorded in the corresponding period of the previous year.
The decline in earnings was also reflected in National Bank of Pakistan’s earnings per share. Basic and diluted earnings per share fell to Rs15.27 during the period from Rs20.05 in the first half of 2025. Total income declined by 18% year on year to Rs130.97 billion from Rs160.41 billion, reflecting pressure on the bank’s core income despite an increase in several components of non-mark-up income.
The main pressure came from the bank’s net mark-up, return and interest income, which declined by 23% to Rs100.10 billion from Rs130.63 billion a year earlier. Mark-up, return and interest earned fell by around 12% to Rs361.73 billion from Rs410.94 billion, while mark-up, return and interest expensed declined by a slower 7% to Rs261.63 billion from Rs280.31 billion. The difference between the pace of decline in income and expenses resulted in a substantial reduction in the bank’s net mark-up income.
National Bank of Pakistan’s non-mark-up and interest income provided some support during the period, increasing by 4% to Rs30.88 billion from Rs29.78 billion. Foreign exchange income recorded a notable increase of 56%, reaching Rs5.52 billion compared with Rs3.53 billion in the same period last year. Net gains on securities also increased by 15% to Rs5.33 billion, while dividend income rose by 18% to Rs3.77 billion.
However, some non-mark-up income categories moved in the opposite direction. Fee and commission income declined by 7% to Rs17.05 billion from Rs18.24 billion. Other income dropped by 71% to Rs220.19 million from Rs767.46 million. The net loss on derecognition of financial assets measured at amortised cost increased by 60% to Rs1.05 billion from Rs655.45 million. The bank’s share of profit from associates also declined by 43% to Rs31.09 million.
Expenses added further pressure to the bank’s earnings during the six month period. Operating expenses increased by 11% to Rs67.88 billion from Rs61.15 billion. Other charges, however, decreased by 36% to Rs20.15 million from Rs31.69 million. Overall, total non-mark-up and interest expenses rose by 11% to Rs67.90 billion from Rs61.18 billion in the corresponding period of 2025.
As a result of lower income and higher operating expenses, National Bank of Pakistan’s profit before credit loss allowance and provisions fell by 36% to Rs63.07 billion from Rs99.22 billion. The bank also faced a significant change in its provisions position compared with the previous year.
During the first half of 2025, the bank recorded a net reversal of Rs5.95 billion in provisions and credit loss allowance, which supported its pre-tax earnings. In the first half of 2026, this position changed to a net credit loss allowance and provision charge of Rs5.26 billion. The movement from a sizeable reversal in the previous year to a charge in the current period represented a swing of more than Rs11 billion and placed additional pressure on profitability.
Profit before taxation consequently declined by 27% to Rs68.32 billion from Rs93.27 billion in the same period last year. Taxation also decreased, falling by 29% to Rs35.48 billion from Rs50.19 billion. The lower tax expense provided some support to the bank’s final earnings, but it was not enough to offset the reduction in net mark-up income, higher operating expenses and the adverse movement in provisions.
National Bank of Pakistan’s financial results for the first half of 2026 therefore show a decline in overall profitability despite stronger foreign exchange income, securities gains and dividend income. The bank’s total income remained under pressure as its core mark-up income weakened, while higher operating expenses and the change in credit loss provisions further reduced earnings.
The results place the bank’s first half performance against a backdrop of changing income and expense conditions across its operations. With profit after taxation down to Rs32.84 billion and earnings per share falling to Rs15.27, the bank recorded a weaker bottom line compared with the first half of 2025. The financial figures underline the impact of lower net mark-up income and higher costs on National Bank of Pakistan’s earnings during the period.
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