Banks Post Rs170B Profit in Q3’25, Up 8% YoY

KARACHI: Pakistan’s listed banks unleashed a combined profit of Rs170 billion in 3Q2025, surging 8% year-on-year and 2% quarter-on-quarter, showcasing ironclad resilience amid a turbulent economic landscape.

Topline Securities data reveals Net Interest Income (NII) climbed 6% year-on-year but stalled quarter-on-quarter. UBL, NBP, and BOP turbocharged the surge: UBL’s NII exploded 78% to Rs92 billion (+Rs40 billion), NBP 74% to Rs61 billion (+Rs26 billion), BOP 61% to Rs23 billion (+Rs9 billion). Strip them out, and sector NII plunged 10% year-on-year.

Quarter-on-quarter, NII flatlined as gains at AKBL (+11%, +Rs2 billion), BOP (+9%, +Rs1.9 billion), MCB (+3%, +Rs1.3 billion) were neutralized by BIPL (-16%), HMB (-9%), MEBL (-2%).

Non-interest income soared 13% year-on-year and 1% quarter-on-quarter to Rs146 billion, fueled by capital gains and FX/fee income. Non-interest expenses spiked 19% year-on-year and 5% quarter-on-quarter to Rs329 billion, driven by remittance costs, pushing Cost-to-Income ratio to 47.9% from 45.9% last quarter and 43.3% a year ago.

Banks flipped a Rs26.9 billion provisioning charge last year into a Rs3.1 billion reversal, signaling easing loan risks post-rate cuts. Effective tax rate held at 53% year-on-year, down from 56% last quarter due to policy shifts.

Pakistan’s banking sector stands battle-tested, primed for sustained growth.