Karachi, February 25, 2026 — The National Bank of Pakistan (NBP) on Wednesday announced its financial results for the calendar year 2025, declaring its highest-ever cash dividend of Rs35 per share, supported by record profitability and strong operational performance.
According to the financial statement, NBP posted record earnings of Rs85 billion in CY25, translating into an earnings per share (EPS) of Rs39.9, marking a robust 227% year-on-year growth. On a quarterly basis, the bank reported profit of Rs19.3 billion, which was 13% lower YoY and 16% lower QoQ, reflecting seasonal and cost adjustments.
The remarkable improvement in annual earnings was primarily driven by strong growth in net interest income (NII) and significant reduction in operating expenses (OPEX). The bank’s NII surged 45% YoY to Rs248.6 billion, mainly due to a 42% decline in interest expense, which more than offset a 28% fall in interest income, resulting in a net positive impact on income.
Non-funded income declined marginally by 1% YoY, impacted by lower gains on securities at Rs13.5 billion (-52.1%) and reduced dividend income at Rs5.3 billion (-11.7%). However, this was partly offset by strong growth in fee income to Rs34.7 billion (+18.9%) and a sharp 167.8% jump in foreign exchange income to Rs15.8 billion.
On the cost side, operating expenses fell sharply by 28% YoY to Rs129.3 billion, bringing the cost-to-income ratio down to 41%, a significant improvement from 74.5% in CY24, which had included a one-off pension charge. Meanwhile, provisioning expenses increased to Rs9.2 billion, compared to Rs4.5 billion last year, reflecting a prudent risk management approach.
The effective tax rate stood at 52% in CY25, slightly lower than 53.8% in CY24.
In terms of balance sheet performance, deposits grew by 15% YoY to Rs4.4 trillion, while investments increased 7% YoY to Rs4.9 trillion. Advances declined by 5% YoY to Rs1.3 trillion, resulting in an investment-to-deposit ratio (IDR) of 111% and an advances-to-deposit ratio (ADR) of 30.2% for CY25.
Market analysts believe NBP’s record dividend and earnings reflect strengthened financial fundamentals, improved efficiency, and better balance sheet management, positioning the bank for sustained performance in the upcoming year.