National Bank of Pakistan reported a record profit of Rs. 85 billion for the calendar year 2025, marking a 227 percent increase and the highest ever profit in its history.
The bank also announced its highest ever dividend of Rs. 35 per share, up sharply from Rs. 8 in the previous year. The strong performance reflects improved efficiency and higher earnings from core operations.
The growth was mainly driven by a significant increase in net interest income and a sharp decline in operating expenses. Net interest income rose to Rs. 248.6 billion, supported by lower interest expenses, according to a report by Arif Habib Ltd.
Operating expenses fell by 28 percent to Rs. 129.3 billion, bringing the cost to income ratio down to 41 percent, compared to over 74 percent last year.
The earlier year included a one time pension expense, which also contributed to the improvement. Non funded income remained relatively stable, with gains supported by higher fee income and foreign exchange earnings, although capital gains on securities declined.
The bank reported provisioning expenses of Rs. 9.2 billion, higher than the previous year, while the effective tax rate stood at 52 percent.
On the balance sheet side, deposits increased by 15 percent to Rs. 4.4 trillion, while investments grew by 7 percent. Advances declined by 5 percent during the period.
