Karachi, April 28, 2025 – National Bank of Pakistan (NBP) provided a comprehensive update to its shareholders on Monday regarding the bank’s financial position as of March 31, 2025.
The bank’s balance sheet showed modest growth, reflecting strategic adjustments in asset allocation and a focus on improving profitability while maintaining robust risk management practices.
Financial Highlights for 3QFY25
As of March 31, 2025, NBP’s balance sheet grew by 1.2%, reaching PKR 6.83 trillion, up from PKR 6.75 trillion at the end of 2024. This increase is attributed to selective growth in high-performing sectors and targeted rebalancing of assets to safer, yield-enhancing segments. The increase in investments was particularly notable, with investments rising by 3.8% to reach PKR 4.79 trillion. This growth was driven by the bank’s strategy of deploying surplus liquidity into secure government securities and high-grade financial instruments.
Advances and Deposits
Gross advances for NBP amounted to PKR 1,567.8 billion, reflecting a decline of 6% compared to the end of December 2024. This decrease was mainly due to seasonal impacts, which are expected to reverse in the coming quarters. Within the loan mix, conventional loans accounted for the majority, while Islamic financing remained stable at PKR 132.4 billion. However, non-performing advances (NPAs) declined to PKR 221.9 billion, indicating a recovery and improved asset quality management.
Total deposits stood at PKR 3.89 trillion, with current deposits contributing PKR 1,886.6 billion. This robust deposit base supported a CASA (current and savings account) ratio of 78.2%, reinforcing NBP’s focus on low-cost and stable funding sources. The bank’s liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) remained well above the regulatory threshold at 213% and 178%, respectively, indicating strong liquidity management.
Capital Adequacy and Soundness
Despite a slight reduction in net assets, from PKR 457.0 billion to PKR 441.3 billion, NBP remains well-capitalized. The Tier 1 capital stood at PKR 350.4 billion, while Tier 2 capital decreased to PKR 125.9 billion. The Total Capital Adequacy Ratio (CAR) reached 28.39%, up from 27.80% at the end of 2024. These indicators confirm the bank’s strong financial position and capacity to absorb market volatility.
NBP continues to align its strategy with prudent risk management and growth objectives, ensuring it remains resilient amid economic challenges.