National Bank of Pakistan reported earnings per share of PKR 40.38 in CY25, up 220% from PKR 12.63 in CY24. This translates into profit after tax of PKR 85.9 Bn compared to PKR 26.9 Bn in SPLY.
The bank declared a dividend of PKR 35 per share in CY25, up from PKR 8 in CY24.
Total income in CY25 reached PKR 311.8 Bn against PKR 236.3 Bn in CY24, an increase of 32%. This was primarily driven by a 45% increase in net mark-up income from PKR 170.9 Bn in CY24 to PKR 248.5 Bn in CY25
The bank saw its total deposits rise from PKR 3.9 Trn at the end of CY24 to PKR 4.4 Trn at the end of CY25, an increase of 15%. The CASA ratio now stands at 81%.
Investments stood at PKR 4.9 Trn at the end of CY25, up 7% from PKR 4.6 Trn at the end of CY24. Management highlighted that out of its investment portfolio is made up of the following holdings:
• T-Bills: 27% (26%:CY24)
• PIBs: 63% (65%:CY24)
• Equities: 5% (4%:CY24)
• Foreign Bonds: 2% (1%:CY24)
• Other Debt Instruments: 6% (3%:CY24)
Out of the PIB portfolio, 70% is in floating rate instruments while the remainder is in fixed rate securities. The bank’s cost to income ratio for CY25 stood at 41% compared to 74% in CY24. Capital Adequacy Ratio stood at 26.2% at end Dec-25, down from 27.8% at the end of CY24.
With regards to the distribution of dividend, management highlighted that the process for approval is ongoing, the law requires that the distribution has to be approved by the federal government.
Once the approval is given the distribution will be made, cabinet approval has been delayed due to ongoing shut down in Islamabad, once it is attained management stands ready to make the disbursement.
With regards to a question regarding a quarterly dividend policy, the management clarified that as per the Bank Nationalization Act, NBP is only allowed to declare dividends on its audited accounts which are released at year end and therefore restricts their ability to make quarterly payouts.
In response to a question regarding any pending litigation relating to pensions and its financial impact on the bank, the management highlighted that the majority of the impact was provided for in 2024 when the verdicts initially came. As a sign of confidence, the management clarified that to give a payout both SBP and government approval is required.
The fact that the bank gave a dividend as part of its CY24 results indicates that the SBP had conducted an analysis of the banks book and its pending litigation and determined that it is adequately secure given the impact of the cases and therefore only then was a dividend given approval.
Important Disclosures
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