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NBP declares highest-ever net profit of Rs85.9 billion
A record 350% final cash dividend announced for the year ended December 31, 2025
- PUBLISHED: Mon 23 Mar 2026, 11:15 AM
The board of directors of National Bank of Pakistan (NBP) convened on February 24, 2026, to approve the audited annual financial statements for the year ended December 31, 2025.
Amid strong macro recovery, NBP delivered an exceptional year of financial performance in 2025 as it reported its highest-ever net profit of Rs85.9 billion and announced its highest-ever 350 per cent cash dividend per share translating into a massive Rs75 billion of total payout. The bank posted a pre-tax profit of Rs178.9 billion, a remarkable 216 per cent increase over 2024 (Rs56.7 billion). This robust result reflects the bank’s strategic agility in a normalising interest rate environment, sharp reduction in cost of funds to 8.8 per cent, disciplined balance-sheet management, and prudent risk controls.
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Net mark-up/interest income surged 45.4 per cent YoY to Rs248.5 billion (2024: Rs170.9 billion), driven by faster deposit repricing, an improved funding mix, and resilient margins despite declining policy rates. The bank’s cost of funds improved markedly to 8.8 per cent (from 15.8 per cent in 2024), reflecting effective liability management and benefiting from monetary easing, which more than offset lower yields on investments (13.0 per cent vs 19.3 per cent) and advances (11.1 per cent vs 15.4 per cen). This dynamic expanded net interest margins, with positive rate variances contributing significantly to the growth. Non-mark-up/non-interest income remained stable at Rs63.2 billion (2024: Rs65.4 billion), with higher foreign exchange and fee income offsetting normalized investment gains. Total income grew 31.9% YoY to Rs311.7 billion, underscoring diversified revenue resilience.
Operating expenses declined significantly to Rs124.8 billion (from Rs177.4 billion in 2024), aided by the absence of non-recurring charges and ongoing cost optimisation. Pre-provision profit soared 217 per cent to Rs186.9 billion. Net credit loss allowances stood at Rs8.0 billion, reflecting stable asset quality and benefits from sovereign rating improvements (CCC to B-). After-tax profit climbed 220 per cent to Rs85.9 billion, translating into earnings per share (EPS) of Rs40.4 (2024: Rs12.6).
Building on prudent profit retention since 2017 to fortify the balance sheet, NBP’s strengthened position now enables sustainable shareholder returns. The board has recommended a final cash dividend of Rs35 per share (350 per cent) for the year ended December 31, 2025, subject to approval at the forthcoming 77th annual general meeting. This very significant payout reflects confidence in earnings sustainability as well as optimising the capital of the Bank without compromising on its role as a domestic systemically important bank. The extraordinary 10X increase in market valuation over the past two years to $2.0 billion is a powerful endorsement of the management’s strategy and the confidence investors place in NBP’s future.
Investor confidence remained elevated in 2025. Standard & Poor’s continued to rank NBP among topperforming Asia Pacific banks.
Market capitalisation grew substantially, reflecting strong returns and positioning.
NBP as a key beneficiary of Pakistan’s economic stabilisation.
The full IFRS 9 adoption enhanced risk transparency. Total eligible capital rose to Rs543.7 billion, with risk weighted assets at Rs2.0 trillion. Capital adequacy ratio stood at 26.21 per cent (2024: 27.80 per cent), CET-1 at 20.21 per cent, leverage ratio at 4.36 per cent, liquidity coverage ratio at 213 per cent, and net stable funding ratio at 171 per cent — all well above regulatory thresholds.
On the balance sheet, total assets expanded to Rs7,066.9 billion (+4.8 per cent YoY). Investments (net) grew to Rs4,922.1 billion (+6.7 per cent), while net advances moderated to Rs1,338.1 billion (-4.8 per cent), reflecting cautious lending amid muted credit demand. Deposits surged 14.6 per cent YoY to Rs4,429.3 billion, with a strong Casa ratio of 81.3 per cent. Borrowings declined 12.8 per cent to Rs1,689.7 billion, enhancing self-funded stability. Net assets rose 16.3 per cent to Rs531.4 billion, yielding book value of Rs249.8 per share.
Stage-3 (credit impaired) loans declined 17.2% to Rs223.0 billion, with specific credit loss allowances of Rs211.0 billion with a coverage ratio of 94.6 per cent. The bank maintains further precautionary credit loss allowances of Rs57 billion against expected credit shocks.
Islamic banking accelerated exponentially during 2025. NBP Aitemaad’s total assets nearly doubled 95.5 per cent YoY to Rs651.9 billion, with earning assets up 84 per cent to Rs555 billion and deposits up 80.6 per cent to Rs558.9 billion. Operating income rose 81.1 per cent to Rs19.4 billion, delivering pre-tax profit of Rs13.7 billion (+117.1 per cent). The network grew with 100 new Islamic banking windows (total 350) and branches (total 312), reaching 662 touchpoints countrywide. Aligned with SBP’s 2027 Shariah transition mandate, the board-approved Shariah transition plan is progressing. Over three years, shareholders’ net assets have soared from Rs300.8 billion at beginning of 2023 to Rs531.4 billion, absorbing pension obligations, dividends, and precautionary provisions while enhancing shareholder value. NBP continues to be one of the most sustainable public sector enterprises in Pakistan. In 2025, the bank contributed Rs93.0 billion in income taxes. Additionally, out of the Rs85.9 billion profit after tax recorded in 2025, the bank has proposed a dividend distribution, of which the GoP/SBP will receive an amount of Rs57.0 billion.
National Bank of Pakistan is the largest public sector commercial bank in Pakistan, playing a pivotal role in financial inclusion, priority sector lending, and economic development.
Commenting on the results, Rehmat Ali Hasnie, President & CEO, said: "2025 marked a transformative year for NBP, with record profitability driven by macro stabilisation, cost efficiencies, and diversified growth while continuing to serve the nation as one of the largest contributors to the public exchequer. Our role transcends banking as we remain a committed partner in Pakistan’s economic progress, supporting SMEs, agriculture, rural communities, and inclusive finance. With a fortified balance sheet and strategic momentum, NBP is well-positioned for sustainable growth ahead. This achievement reflects the dedication of our team and the trust of our stakeholders, living true to our tagline: Ek Azm, Ek Pehchan – National Bank Aur Pakistan."