Despite policy rate volatility and economic challenges, Pakistan’s banking sector concluded 2024 with impressive profitability and asset growth. Overall bank profits crossed Rs. 600 billion, while tax contributions exceeded Rs. 650 billion, reflecting the sector’s robust fiscal impact.
Throughout the year, higher deposit rates attracted extraordinary inflows of funds, albeit triggering increased tax liabilities due to low Average Deposit Ratios (ADR). In response, many banks strategically redirected deposits as private sector loans to manage their tax burden. This practice extended even to Islamic banks, which traditionally adhere to ethical banking principles.
Government-issued Sukuks for budgetary support and development projects also played a pivotal role in driving profitability, particularly for Islamic financial institutions.
The sector’s strong performance was mirrored in the Pakistan Stock Exchange (PSX), where banking stocks attracted considerable investor interest, bolstering share trading and market capitalization.
Top Performing Banks of 2024
1. Meezan Bank
Pakistan’s largest Islamic bank emerged as the most profitable bank of 2024, setting a new industry benchmark. It posted an unprecedented profit of Rs. 101.5 billion, marking a 20% year-on-year growth from Rs. 84.5 billion in 2023.
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Pre-tax profit: Rs. 222 billion
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Tax paid: Rs. 121 billion
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Dividend: Rs. 28 per share
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EPS: Rs. 57
2. United Bank Limited (UBL)
Regaining its position as the second most profitable bank, UBL recorded a 34% rise in net profits, reaching Rs. 75.7 billion in 2024, up from Rs. 56.4 billion.
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Pre-tax profit: Rs. 150 billion
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Tax paid: Rs. 74.3 billion
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Dividend: Rs. 44 per share
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EPS: Rs. 61
UBL also advanced its Islamic banking operations, fully transitioning to Shariah-compliant services in Khyber Pakhtunkhwa and Balochistan.
3. MCB Bank
MCB slipped to third position, with profits dipping slightly to Rs. 57.6 billion.
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Pre-tax profit: Rs. 118.4 billion
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Tax paid: Over Rs. 60 billion
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Dividend: Rs. 36 per share
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EPS: Rs. 48
4. Habib Bank Limited (HBL)
HBL ranked fourth, reporting flat profit growth with Rs. 57.8 billion in earnings.
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Balance sheet: Rs. 6.1 trillion
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Deposits: Rs. 4.4 trillion
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Pre-tax profit: Rs. 120 billion
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Tax paid: Rs. 62.5 billion
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Dividend: Rs. 16.5 per share
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Share value: Rs. 38
5. Standard Chartered Bank
Standard Chartered rose to fifth position, reporting its highest-ever profit of Rs. 46 billion—a 7.9% increase.
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Pre-tax profit: Rs. 100 billion
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Tax paid: Rs. 54 billion
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Dividend: Rs. 9 per share
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EPS: Rs. 11.90
The bank is also actively pursuing a transition to Islamic banking.
6. Allied Bank Limited (ABL)
ABL reached sixth place with record-breaking profits of Rs. 43 billion, up from Rs. 40 billion.
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Pre-tax profit: Rs. 87 billion
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Tax paid: Rs. 44.8 billion
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Dividend: Rs. 16 per share
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Share value: Rs. 37.5
7. Bank Al Habib
Ranked seventh, Bank Al Habib recorded its highest-ever profit of Rs. 39 billion, reflecting a 12% increase.
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Pre-tax profit: Rs. 83.8 billion
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Tax paid: Rs. 43.9 billion
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Dividend: Rs. 17 per share
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Share value: Rs. 35.8
8. Bank Alfalah
Bank Alfalah followed closely with Rs. 38.3 billion in profit, growing 5% year-on-year.
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Pre-tax profit: Rs. 83 billion
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Tax paid: Rs. 44.7 billion
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Dividend: Rs. 8.5 per share
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Share value: Rs. 24.3
9. National Bank of Pakistan (NBP)
NBP experienced a significant drop, falling from fifth to ninth place, with profits declining to Rs. 26.8 billion from Rs. 56.8 billion.
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Pre-tax profit: Rs. 56.6 billion
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Tax paid: Rs. 29.8 billion
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Dividend: Rs. 8 per share
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EPS: Rs. 12
10. Habib Metro Bank
Habib Metro rounded out the top 10 with flat growth, reporting Rs. 24.6 billion in profits.
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Pre-tax profit: Rs. 56.7 billion
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Tax paid: Rs. 27.9 billion
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Dividend: Rs. 12 per share
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Share value: Rs. 23
Outlook: Transition Toward Islamic Banking
Looking ahead, the 26th constitutional amendment—mandating the elimination of Riba/interest-based banking by 2028—signals a transformative shift in Pakistan’s financial landscape. This transition is expected to accelerate the adoption of Shariah-compliant banking. Banks with established Islamic banking frameworks, particularly those active in Sukuk investment, are well-positioned to lead the next phase of growth.
As the industry navigates this significant change, profitability drivers will likely shift toward ethical and Shariah-compliant financial instruments, ushering in a new era for the country’s banking sector.
