Karachi, March 4, 2025 – The National Bank of Pakistan (NBP) has successfully managed an extraordinary pension expense of Rs 68 billion without compromising its financial stability, according to Chairman Ashraf Mahmood Wathra.
The expense arose following a ruling by the Honourable Supreme Court on a long-pending pension case, posing a significant challenge for the bank.
Despite this unprecedented financial burden, NBP maintained its capital strength and delivered solid financial performance for the fiscal year ending December 31, 2024. The bank’s net interest income rose to Rs 170.9 billion, with a net spread of 2.37%. Additionally, non-fund income surged by over 61% to reach Rs 65.4 billion, contributing to a 12.9% year-on-year growth in total revenue, which stood at Rs 236.3 billion.
The pension-related expense impacted the bottom line, but NBP remained operationally resilient. The bank posted after-tax profits of Rs 26.9 billion while preserving a strong balance sheet. Total assets increased to Rs 6,744.1 billion, with shareholder equity rising by 19.4% to Rs 457 billion. Deposits also expanded by 5.2% to Rs 3,865.6 billion, maintaining a CASA ratio of 79.4% to support low-cost funding.
NBP continued its strategic focus on Islamic banking, achieving remarkable growth in its Shariah-compliant division, NBP Aitemaad. Assets in this segment surged by 137.9% year-on-year to Rs 333.4 billion, while deposits grew by 171.9% to Rs 309.4 billion.
Following the implementation of IFRS 9, NBP successfully navigated a major transition, ensuring compliance with State Bank of Pakistan regulations. While the transition resulted in a net impact of Rs 12 billion on opening equity, the bank improved its financial soundness indicators. Total eligible capital increased by 27.4%, closing at Rs 479.8 billion, while CET 1 and total CAR stood at 20.51% and 27.80%, respectively.
The resumption of dividend payments after seven years marks a significant milestone, highlighting NBP’s financial strength despite the pension expense. The board remains committed to strategic governance, risk management, and long-term sustainability. Moving forward, NBP aims to enhance compliance frameworks, streamline operations, and reinforce its role as a key player in Pakistan’s financial sector while continuing to support public sector entities and national economic development.