KARACHI – Pakistan’s banking sector is riding profit wave as commercial banks earned staggering Rs170 billion, marking 8pc jump year-on-year and a 2% rise from the previous quarter, a report comes showing performance of the third quarter of 2025.
As other sectors struggle, banks are thriving, thanks to a safe bet on government securities, allowing them to maintain stable, low-risk income. Meanwhile, lending to private sector plummeted to near-zero levels, even four months into the fiscal year. Experts warn that this stagnation could weigh on the country’s overall economic growth.
The sector’s net interest income (NII) climbed 6percent year-on-year, largely due to stellar performances by top banks:
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United Bank Limited (UBL) surged 78% to Rs92 billion
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National Bank of Pakistan (NBP) jumped 74% to Rs61 billion
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Bank of Punjab (BOP) rose 61% to Rs23 billion
Besides these three powerhouses, the sector’s NII actually fell 10% year-on-year. Quarter-on-quarter results remained mostly flat, with minor gains and losses across the board.
Non-interest income also climbed 13% year-on-year to Rs146 billion, fueled by capital gains, fee income, and strong foreign exchange earnings. But banks are also spending more, non-interest expenses surged 19% year-on-year to Rs329 billion, largely due to rising remittance-related costs.
Cost-to-income ratio (CIR) jumped to 47.9%, up from 45.9% last quarter and 43.3% in the same quarter last year.
Bank of Punjab reports 156% surge in operating profit for nine months
