Pakistan’s banking sector has shown resilience and remarkable growth despite facing fluctuating policy rates and challenges in the market. In 2024, many of the country’s top banks reported impressive profits and asset growth, even in the face of policy and regulatory hurdles. While the banking sector grappled with increased tax liabilities due to high deposit rates and low Average Deposit Rates (ADR), some banks found ways to navigate the challenges, with many manipulating their deposits as loans to avoid tax implications. Islamic banks, in particular, leveraged their ethical banking models to maintain profitability.
One of the key drivers of profitability for many banks was the government’s issuance of Sukuks, which funded budgetary support and development projects, contributing positively to the banks’ bottom lines. By the end of the year, the banking sector had exceeded Rs. 600 billion in profits, with tax contributions surpassing the profits at over Rs. 650 billion. Here’s a breakdown of the top 10 most profitable banks in Pakistan for 2024.
1. Meezan Bank
Meezan Bank, Pakistan’s largest Islamic bank, led the way in 2024, setting an all-time record with a profit exceeding Rs. 100 billion, the highest ever in the country’s banking and corporate sectors. The bank reported a remarkable 20% growth in its annual profits, reaching Rs. 101.5 billion, compared to Rs. 84.5 billion in 2023. It also announced a pre-tax profit of Rs. 222 billion and contributed Rs. 121 billion in taxes. The bank paid a dividend of Rs. 28 per share, with earnings per share rising to Rs. 57 from Rs. 47 in 2023.
2. United Bank Limited
United Bank Limited (UBL) secured the second spot in 2024, climbing from fourth place in 2023. The bank’s profits surged by 34%, reaching Rs. 75.7 billion, up from Rs. 56.4 billion the previous year. UBL’s pre-tax profit was Rs. 150 billion, and the bank contributed Rs. 74.3 billion in taxes. Earnings per share grew to Rs. 61, up from Rs. 45. The bank also made significant strides in its transition to Islamic banking, converting its operations in Khyber Pakhtunkhwa and Balochistan.
3. MCB Bank
MCB Bank slipped to third place in 2024, recording a decrease in profitability to Rs. 57.6 billion, down from Rs. 59.8 billion the previous year. Despite the dip in profits, the bank reported a pre-tax profit of Rs. 118.4 billion and paid over Rs. 60 billion in taxes. MCB’s earnings per share also decreased to Rs. 48 from Rs. 50. The bank declared a dividend of Rs. 36 per share.
4. Habib Bank Limited
Habib Bank Limited (HBL) fell to fourth position in 2024, maintaining flat growth with profits totaling Rs. 57.8 billion. HBL’s balance sheet expanded to Rs. 6.1 trillion, with total deposits closing at Rs. 4.4 trillion. The bank’s pre-tax profit stood at Rs. 120 billion, with taxes amounting to Rs. 62.5 billion. HBL’s earnings per share were Rs. 38, and it declared a dividend of Rs. 16.5 per share.
5. Standard Chartered Bank
Standard Chartered Bank made significant progress in 2024, reporting the highest-ever profit of Rs. 46 billion, reflecting a 7.9% annual growth. The bank moved up from sixth to fifth place among the most profitable banks. It reported a pre-tax profit of Rs. 100 billion and contributed Rs. 54 billion in taxes. The bank’s earnings per share stood at Rs. 11.90, with a dividend payout of Rs. 9 per share.
6. Allied Bank Limited
Allied Bank Limited (ABL) made an impressive leap to sixth place in 2024, reporting its highest-ever profit of Rs. 43 billion, up from Rs. 40 billion in 2023. The bank posted a pre-tax profit of Rs. 87 billion and paid Rs. 44.8 billion in taxes. Its share value rose to Rs. 37.5, and it declared a dividend of Rs. 16 per share.
7. Bank Al Habib
Bank Al Habib jumped to seventh position with a profit of Rs. 39 billion, reflecting a 12% growth compared to the previous year. The bank reported a pre-tax profit of Rs. 83.8 billion and paid Rs. 43.9 billion in taxes. Its share value increased from Rs. 31.7 to Rs. 35.8, and the bank declared a dividend of Rs. 17 per share.
8. Bank Alfalah
Bank Alfalah reported its highest-ever profit of Rs. 38.3 billion in 2024, marking a 5% growth from the previous year. The bank’s pre-tax profit was Rs. 83 billion, and it contributed Rs. 44.7 billion in taxes. Its share value increased from Rs. 23.1 to Rs. 24.3, with a dividend payout of Rs. 8.5 per share.
9. National Bank of Pakistan
National Bank of Pakistan (NBP) saw a significant decline in profitability in 2024, dropping from fifth to ninth place. The bank’s profits fell to Rs. 26.8 billion, down from Rs. 56.8 billion in 2023. Despite a pre-tax profit of Rs. 56.6 billion, NBP’s earnings per share decreased to Rs. 12, with a dividend of Rs. 8 per share.
10. Habib Metro Bank
Habib Metro Bank maintained its position in the top 10, reporting a profit of Rs. 24.6 billion, showing flat growth compared to the previous year. The bank posted a pre-tax profit of Rs. 56.7 billion and paid Rs. 27.9 billion in taxes.
In conclusion, Pakistan’s banking sector has demonstrated resilience and growth in 2024, with the top banks achieving substantial profits. Despite regulatory and market challenges, these banks continue to play a crucial role in supporting the country’s economic development and financial inclusion.