NBP Profit Rises to PKR 32.4 Billion as Bank Holds Firm Through 1H26 Volatility
National Bank of Pakistan reports resilient half-year results, supported by stronger investments, lower funding costs and growth in low-cost deposits.
KARACHI, August 28, 2026: NBP profit remained resilient in the first half of 2026, with National Bank of Pakistan reporting Profit After Tax of PKR 32.4 billion despite a volatile economic and interest-rate environment.
The bank’s Board of Directors approved the interim condensed financial statements for the six months ended June 30, 2026, at a meeting held on August 27.
National Bank of Pakistan reported Profit Before Tax of PKR 67.3 billion during the period, while Earnings Per Share stood at PKR 15.23.
The bank said its performance reflected disciplined balance-sheet management, strong liquidity and funding positions, and a continued focus on maintaining capital strength.
Investments Support Earnings
NBP said its core franchise remained resilient despite challenges facing the wider economy and banking industry.
Interest income was supported by double-digit growth in investments, which increased by 15.1% during the first half of the year. The bank also benefited from a stronger funding mix as low-cost current and savings accounts continued to grow.
The improvement in its deposit structure helped reduce the overall cost of funds and provided some protection against pressure on asset yields.
Gross interest income reached PKR 361.7 billion in the six months ended June 30.
Non-mark-up income also increased 3.8% year-on-year to PKR 27.6 billion. Foreign exchange income rose to PKR 5.4 billion from PKR 3.5 billion a year earlier, while dividend income jumped 30% to PKR 4.1 billion.
The bank said the performance demonstrated greater diversification across its income streams.
Digital Investment Drives Costs
Operating expenses increased by around 11% year-on-year to PKR 65.5 billion.
According to NBP, the increase largely reflected targeted investment in digital capabilities and technology infrastructure. The spending is aimed at strengthening operational capacity, resilience and scalability.
Risk management remained another key area of focus.
Recoveries against non-performing loans and credit-loss allowances resulted in a net reversal of PKR 5.3 billion during the first half, compared with a charge of PKR 4.8 billion in the corresponding period of 2025.
Specific non-performing loan provision coverage stood at 93% under applicable State Bank of Pakistan regulations, while the bank said it continued to maintain strong IFRS 9 Expected Credit Loss coverage.
Assets Reach PKR 7.8 Trillion
NBP’s total assets rose 10.9% during the first half of 2026 to PKR 7.8 trillion, compared with PKR 7.07 trillion at the end of December 2025.
Investments increased to PKR 5.67 trillion, with the bank maintaining a strategic focus on shorter-maturity government securities. The positioning is intended to provide greater flexibility as repricing opportunities emerge.
Gross advances stood at PKR 1.58 trillion, compared with PKR 1.61 trillion at the end of 2025. NBP attributed the 2.4% decline mainly to seasonal factors affecting its Commercial and SME portfolios.
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Islamic financing, meanwhile, continued to expand, rising 27% during the first half to PKR 312.8 billion.
CASA Ratio Improves to 85%
Total deposits stood at PKR 4.2 trillion as of June 30.
Current deposits accounted for PKR 2.07 trillion, representing 49.2% of total deposits. The bank’s overall CASA base reached PKR 3.53 trillion, taking the CASA ratio to approximately 85%, up from 80.7% at the end of 2025.
NBP maintained strong liquidity throughout the period. Its Liquidity Coverage Ratio stood at 198%, while the Net Stable Funding Ratio was 152%. Both remained significantly above the regulatory minimum of 100%.
Capital Position Remains Strong
The bank’s capital position remained robust despite the impact of a significant dividend payout on eligible capital.
Risk Weighted Assets increased marginally by 1% to PKR 2.11 trillion.
NBP’s Total Capital Adequacy Ratio stood at 22.12%, while its Tier-1 Capital Adequacy Ratio was 16.79%. At the end of 2025, the corresponding ratios stood at 26.21% and 19.65%.
The bank’s leverage ratio stood at 3.62%, with other financial soundness indicators also remaining strong.
New Interim Leadership
The Federal Government has assigned Abdul Wahid Sethi, SEVP and Chief Financial Officer, the additional acting charge of President and CEO for an interim period of three months or until the appointment of a regular President and CEO, whichever comes first.
NBP said it expects the new leadership to further strengthen operational performance, accelerate its transformation agenda and enhance value for customers, shareholders and other stakeholders.
Commenting on the results, Sethi said the operating environment could gain further momentum during the second half of 2026 as geopolitical tensions ease, business confidence improves and economic activity gradually recovers.
He expects these developments to support a revival in credit demand, particularly across the Commercial and SME sectors.
With strong liquidity, a broad funding base, robust capital and disciplined risk management, NBP said it is positioned to support and benefit from an economic recovery.
The bank plans to continue pursuing risk-calibrated asset growth and deeper customer relationships, with stronger lending and improving economic activity expected to provide additional momentum to its core business through the end of 2026.
