NBP faces a sharp increase in regulatory penalties as its nine-month after-tax profit falls 26.6% to Rs48.9 billion.

The State Bank of Pakistan (SBP) has imposed monetary penalties amounting to Rs804 million on the National Bank of Pakistan (NBP) during the first nine months of calendar year 2026, according to the bank’s financial statements.

The penalties, imposed between January and September 2026, represent a significant increase from Rs56.52 million recorded during the corresponding period of 2025.

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The SBP imposes monetary penalties on banks for various regulatory and compliance-related violations to ensure adherence to applicable banking laws, regulations and supervisory requirements.

Meanwhile, NBP’s financial performance remained under pressure during the nine-month period ended September 30, 2026, with its after-tax profit declining by 26.6% year-on-year.

According to the financial results, the bank reported an after-tax profit of Rs48.9 billion, compared with Rs66.6 billion in the corresponding period last year. Earnings per share also decreased to Rs22.98 from Rs31.32.

NBP’s net interest income fell by 18.4% to Rs156.1 billion from Rs191.3 billion, while non-fund income declined by 9.3% to Rs37.5 billion.

Consequently, total income decreased by 16.8% to Rs193.6 billion against Rs232.6 billion in the same period of 2025.

The bank attributed the decline in gross interest income partly to lower average policy rates. Gross interest income fell to Rs562.6 billion from Rs601.3 billion.

Operating expenses increased by 8.8% to Rs96.8 billion compared with Rs89 billion a year earlier. Employee-related costs accounted for approximately 62% of total operating expenses, reaching Rs59.5 billion.

The bank’s cost-to-income ratio also deteriorated to 50%, compared with 38.2% in the corresponding period last year.

Meanwhile, NBP’s non-performing loans increased by 7% to Rs239.3 billion as of September 30, 2026, compared with Rs223 billion at the end of December 2025. The infection ratio rose to 14.7% from 13.8%.

Despite the challenging operating environment, NBP said it continued to focus on prudent balance-sheet management, risk management and operational efficiency to maintain financial stability and support economic activity.

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