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KARACHI, August 28, 2026: National Bank of Pakistan (NBP) posted a Profit After Tax of PKR 32.4 billion for the first half of 2026, as the bank maintained strong liquidity, funding and capital positions despite a changing interest rate environment.
The bank’s Board of Directors approved the interim condensed financial statements for the six months ended June 30, 2026, at a meeting held on August 27.
NBP reported Profit Before Tax of PKR 67.3 billion during the period. Earnings Per Share stood at PKR 15.23.
NBP said strong growth in investments helped support its interest income during the first half of the year.
Investments increased by 15.1% during the period. The bank also improved its funding mix as low-cost CASA deposits continued to grow.
The stronger deposit base helped reduce the overall cost of funds. This partly offset pressure from lower asset yields in the changing interest rate environment.
As a result, NBP recorded gross interest income of PKR 361.7 billion during 1H26.
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Non-mark-up income also increased. The figure rose 3.8% year-on-year to PKR 27.6 billion.
Foreign exchange income increased to PKR 5.4 billion, compared with PKR 3.5 billion a year earlier. Dividend income also rose 30% to PKR 4.1 billion.
The bank kept a controlled approach to operating costs during the period.
Operating expenses increased by around 11% year-on-year to PKR 65.5 billion. NBP said the increase mainly reflected investment in digital services and technology infrastructure.
The bank said these investments will strengthen its operating capacity and support future growth.
Risk management also supported the financial results. NBP recorded a net reversal of PKR 5.3 billion in credit loss allowances during 1H26.
The bank recorded a charge of PKR 4.8 billion during the same period last year.
Specific coverage for non-performing loans stood at 93% under applicable State Bank of Pakistan regulations. NBP also maintained strong coverage under the IFRS 9 Expected Credit Loss framework.
NBP’s total assets increased 10.9% during the first half of 2026. Assets reached PKR 7.8 trillion, compared with PKR 7.07 trillion at the end of 2025.
Investments rose to PKR 5.67 trillion. The bank said it focused the portfolio on shorter-maturity government securities, giving it more flexibility as market rates change.
Gross advances stood at PKR 1.58 trillion, down from PKR 1.61 trillion at the end of 2025.
NBP attributed the 2.4% decline mainly to seasonal factors in the Commercial and SME segments.
Islamic financing continued to grow strongly. It increased 27% during the first half of the year to PKR 312.8 billion.
NBP’s total deposits stood at PKR 4.2 trillion as of June 30, 2026.
Current deposits reached PKR 2.07 trillion and accounted for 49.2% of total deposits. The bank’s overall CASA base stood at PKR 3.53 trillion.
This pushed the CASA ratio to around 85%, compared with 80.7% at the end of 2025.
The bank also maintained strong liquidity. Its Liquidity Coverage Ratio stood at 198%, while the Net Stable Funding Ratio reached 152%. Both remained well above the regulatory minimum of 100%.
NBP maintained a strong capital position despite the impact of a significant dividend payout on eligible capital.
Risk Weighted Assets increased 1% to PKR 2.11 trillion.
The bank’s Total Capital Adequacy Ratio stood at 22.12%, while its Tier-1 Capital Adequacy Ratio reached 16.79%.
At the end of 2025, the two ratios stood at 26.21% and 19.65%, respectively.
NBP’s leverage ratio stood at 3.62%, while other financial strength indicators also remained solid.
The Federal Government recently assigned Abdul Wahid Sethi, SEVP/CFO, the additional acting charge of the President and CEO Office.
The interim appointment will remain in place for three months or until the appointment of a regular President and CEO, whichever comes first.
NBP said it expects the new leadership to strengthen operations, advance its transformation plans and create greater value for customers, shareholders and other stakeholders.
Commenting on the bank’s performance, Sethi said the operating environment could improve during the second half of 2026.
He pointed to easing geopolitical tensions, improving business confidence and a gradual recovery in economic activity.
These developments could support a recovery in credit demand, particularly in the Commercial and SME segments.
Sethi said NBP’s strong liquidity, funding base, capital position and risk management framework place the bank in a strong position to support the expected recovery.
The bank plans to pursue risk-calibrated asset growth and strengthen customer relationships. NBP expects stronger advances and improving business activity to provide greater momentum to its core business during the remainder of 2026.
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