National Bank of Pakistan (NBP) delivered a resilient financial performance during the first half of 2026, reporting a Profit After Tax (PAT) of PKR 32.4 billion despite volatility in interest rates and challenging conditions across the banking sector.
The bank’s Profit Before Tax stood at PKR 67.3 billion, while earnings per share reached PKR 15.23 for the six months ended June 30, 2026.
Investments Support NBP’s Interest Income
NBP’s investment portfolio remained a key contributor to its earnings during the period. Investments grew 15.1% during the first half to reach PKR 5.67 trillion.
The bank said its stronger funding mix, supported by growth in low-cost current and savings accounts (CASA), helped reduce its overall cost of funds and cushion pressure from lower asset yields.
Gross interest income reached PKR 361.7 billion during 1H2026.
Non-mark-up income also improved, increasing 3.8% year-on-year to PKR 27.6 billion. Foreign exchange income rose to PKR 5.4 billion from PKR 3.5 billion, while dividend income increased 30% to PKR 4.1 billion.
Strong Deposit Base Supports Liquidity
NBP maintained a strong deposit and liquidity position during the first half of the year. Total deposits stood at PKR 4.2 trillion as of June 30.
Current deposits accounted for PKR 2.07 trillion, representing 49.2% of total deposits. The bank’s overall CASA base reached PKR 3.53 trillion, lifting the CASA ratio to approximately 85%, compared with 80.7% at the end of 2025.
The bank reported a Liquidity Coverage Ratio of 198% and a Net Stable Funding Ratio of 152%, both well above the regulatory minimum of 100%.
Islamic Financing Continues To Grow
While gross advances declined 2.4% to PKR 1.58 trillion from PKR 1.61 trillion at the end of 2025, NBP attributed the reduction mainly to seasonal factors affecting its Commercial and SME segments.
Islamic financing, however, continued to expand strongly. It increased 27% during the first half to reach PKR 312.8 billion.
The growth reflects the bank’s continued expansion of its Islamic banking business while conventional advances remained affected by seasonal trends.
Expenses Rise With Digital Investment
NBP’s operating expenses increased approximately 11% year-on-year to PKR 65.5 billion.
According to the bank, the increase was primarily linked to investments in digital capabilities and technology infrastructure. These investments are intended to strengthen operational capacity, resilience and scalability over the longer term.
Risk management remained another positive area. Recoveries against non-performing loans and credit loss allowances resulted in a net reversal of PKR 5.3 billion during 1H2026, compared with a charge of PKR 4.8 billion in the same period last year.
Specific NPL provision coverage stood at 93% under applicable State Bank of Pakistan regulations.
NBP Maintains Strong Capital Position
The bank’s total assets increased 10.9% during the first half of 2026, reaching PKR 7.8 trillion compared with PKR 7.07 trillion at the end of December 2025.
Despite a significant dividend payout affecting eligible capital, NBP continued to maintain a strong capital position. Risk-weighted assets increased marginally by 1% to PKR 2.11 trillion.
The bank’s Total Capital Adequacy Ratio stood at 22.12%, while its Tier-1 Capital Adequacy Ratio was 16.79%.
The leverage ratio stood at 3.62%, with the bank saying other financial soundness indicators also remained strong.
Abdul Wahid Sethi Assumes Acting CEO Charge
The Federal Government has assigned Abdul Wahid Sethi, NBP’s SEVP and CFO, the additional acting charge of President and CEO.
Sethi will hold the acting position for three months or until a regular President and CEO is appointed, whichever comes earlier.
The bank said the new interim leadership is expected to support operational excellence, its transformation agenda and value creation for customers, shareholders and other stakeholders.
NBP Expects Credit Demand To Recover
Sethi expects the operating environment to improve during the second half of 2026, supported by easing geopolitical tensions, improving business confidence and a gradual recovery in economic activity.
The bank expects these developments to encourage a revival in credit demand, particularly within the Commercial and SME segments.
With strong liquidity, a sizeable low-cost deposit base, robust capital and disciplined risk management, NBP believes it is well positioned to benefit from an improvement in economic activity.
The bank plans to pursue risk-calibrated asset growth and deepen customer relationships, while stronger advances and improving business conditions are expected to provide additional momentum through the remainder of the year.