National Bank of Pakistan (NBP) has reported its highest-ever dividend payout of 80%, despite an extraordinary pension-related cost. The bank achieved a pre-tax profit of PKR 56.7 billion, demonstrating strong financial resilience.
Strong Financial Performance
NBP generated gross mark-up income of PKR 1,089.4 billion, ranking among the top revenue-generating banks in Pakistan. The bank paid PKR 918.5 billion to depositors, improving its cost of funds to 15.84%.
Net interest income rose 1.3% year-over-year (YoY) to PKR 170.9 billion, while non-markup income surged 61.1% to PKR 65.4 billion. Business-as-usual expenses increased 17% YoY, reaching PKR 119.8 billion.
Despite an extraordinary pension-related expense of PKR 68.0 billion, the bank maintained strong earnings. After-tax profit stood at PKR 26.9 billion.
Record Dividend and Shareholder Returns
For the first time since 2017, NBP announced a cash dividend of PKR 8 per share (80%), subject to shareholder approval at the 76th Annual General Meeting.
This move reflects the bank’s commitment to sustainable shareholder value while maintaining financial stability. With a market capitalization of PKR 175 billion, NBP recorded an impressive 170% growth since February 2024.
IFRS 9 Implementation and Capital Strength
NBP successfully adopted IFRS 9, complying with State Bank of Pakistan (SBP) regulations. Despite a PKR 12.0 billion net tax impact on opening equity, the bank strengthened its capital position.
- Total eligible capital: Increased 27.4% to PKR 479.8 billion
- Common Equity Tier 1 (CET 1) ratio: 20.51%
- Capital Adequacy Ratio (CAR): 27.80%
- Liquidity Coverage Ratio: 206% (2023: 176%)
- Net Stable Funding Ratio: 174% (2023: 159%)
Loan and Deposit Growth
NBP’s gross loans and advances rose to PKR 1,672.8 billion, reflecting a 2.5% YoY growth. The advance-to-deposit ratio stood at 43.3%.
Total deposits reached PKR 3,865.6 billion, with 94.2% coming from stable customer deposits. The bank maintained a high CASA ratio of 79.5%, with current deposits forming 50.4% of the total.
NBP also strengthened credit loss allowances to PKR 225.8 billion, maintaining an 83.8% non-performing loan (Stage-3) coverage ratio.
Leading in Agricultural and SME Financing
NBP emerged as the top agricultural credit performer for FY’23 and FY’24 among large banks, according to SBP ratings.
The bank’s SME financing grew by 12% YoY, reaching PKR 99.0 billion in 2024.
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Expanding Islamic Banking Operations
Islamic banking remains one of NBP’s fastest-growing segments. In 2024, the bank expanded its Islamic Banking Windows (IBWs) to 251, adding 100+ new locations.
NBP Aitemaad’s total assets soared 137.9% YoY to PKR 333.4 billion. The launch of NBP Aitemaad Advance Salary, an Islamic alternative to conventional retail lending, marks a significant milestone.
In line with the State Bank of Pakistan’s mandate to transition fully to Islamic banking by 2027, NBP plans to establish 100 more IBWs and convert 100 branches in 2025.
Commitment to ESG and Sustainable Growth
NBP actively integrates Environmental, Social, and Governance (ESG) principles into its business strategy. In 2024, it invested PKR 150 million in CSR initiatives and provided PKR 30.1 billion in green financing facilities.
Driving Pakistan’s Economic Development
NBP’s President & CEO, Rehmat Ali Hasnie, emphasized the bank’s role beyond traditional banking. He highlighted its commitment to economic growth, financial inclusion, and sustainable development.
As Pakistan’s systemically important bank, NBP continues to support individuals, businesses, and key economic sectors, staying true to its vision: Ek Azm Aur Ek Pehchan – National Bank Aur Pakistan.
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