{"id":5808,"date":"2025-08-30T20:36:12","date_gmt":"2025-08-30T15:36:12","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=5808"},"modified":"2025-08-30T20:44:38","modified_gmt":"2025-08-30T15:44:38","slug":"pakistani-banks-listed-on-the-pakistan-stock-exchanges-psx-benchmark-kse-100-index-post-record-1-16bln-profit-in-1hcy25","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=5808","title":{"rendered":"Pakistani Banks listed on the Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index post record $1.16bln profit in 1HCY25"},"content":{"rendered":"

Karachi:<\/strong> Banks listed on the Pakistan Stock Exchange\u2019s (PSX)<\/a> benchmark KSE-100 Index recorded their highest-ever half-year profitability in the first six months of 2025, according to a report released by Arif Habib Limited on Friday.<\/p>\n

The listed banks posted a combined profit after tax (PAT) of Rs326 billion (USD 1.16 billion)<\/strong> in 1HCY25, reflecting a 19% year-on-year (YoY) growth<\/strong>. The strong momentum carried into the second quarter as profits surged to Rs160 billion<\/strong>, up 23% YoY<\/strong>, driven by balance sheet expansion and diversified income streams.<\/p>\n

At the core of the performance, Net Interest Income (NII)<\/strong> remained the main growth driver, reaching an unprecedented Rs1 trillion in 1HCY25<\/strong>, marking a 22% YoY increase<\/strong>. In 2QCY25 alone, NII hit Rs510 billion<\/strong>, up 20% YoY<\/strong> on the back of expanding asset volumes. Meanwhile, non-markup income<\/strong> also rose to Rs255 billion (+7% YoY)<\/strong> during the half year, with 2QCY25 contributing Rs132 billion (+9% YoY)<\/strong>.<\/p>\n

Deposits, Advances Hit Record Highs<\/h2>\n

The sector also posted double-digit growth in deposits and advances as of June 2025. United Bank Limited<\/a> (UBL)<\/strong> led with the fastest deposit growth of 32% YoY to Rs4.3 trillion<\/strong>, while Habib Bank Limited (HBL)<\/strong> maintained the largest deposit base at Rs5.2 trillion<\/strong>. Overall, 11 of the 13 listed banks achieved record deposit levels.<\/p>\n

Despite inflationary pressures pushing operating expenses up by 18% to Rs553 billion<\/strong>, the sector maintained cost efficiency, with the cost-to-income ratio at 46%<\/strong>, only slightly higher than the 45.4% in 1HCY24<\/strong>.<\/p>\n

Banking Stocks Outperform KSE-100<\/h2>\n

On the capital markets front, banks significantly outperformed the benchmark KSE-100, delivering a 70% return year-to-date in 2025<\/strong>, compared to the index\u2019s 27% gain<\/strong>. The rally was supported by record profitability, resilient asset quality, and surprise dividend announcements that boosted investor confidence.<\/p>\n

National Bank of Pakistan (NBP)<\/strong> led stock market gains with a 148% rise in share price<\/strong>, followed by UBL (111%)<\/strong> and Askari Bank (AKBL) (105%)<\/strong>, each benefiting from robust earnings momentum and capital distribution.<\/p>\n

Dividend surprises further lifted sentiment, with Bank of Punjab (BOP)<\/strong> announcing its first-ever interim dividend of PKR 1\/share<\/strong>, while AKBL<\/strong> declared Rs2\/share<\/strong>, its first such payout since 2014.<\/p>\n

Islamic Banks Under Pressure<\/h2>\n

In contrast, Islamic banks faced a profitability<\/a> squeeze, with profits slipping 13% YoY to Rs57 billion<\/strong> in 1HCY25. The decline was attributed to lower interest rates and regulatory changes effective from January 2025. Conventional banks, however, continued to thrive, posting a strong 29% YoY growth<\/strong> in profits during the same period.<\/p>\n

Contribution to National Exchequer<\/h2>\n

The banking sector remained a major contributor to government revenues, paying Rs394 billion in taxes<\/strong> in 1HCY25, a sharp 44% YoY increase<\/strong>, due to a higher effective tax rate of 54%<\/strong>, compared to 48% in 1HCY24<\/strong>.<\/p>\n

Source: Business Recorder<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Karachi: Banks listed on the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index recorded their highest-ever half-year profitability in the first six months of 2025, according to a report released by Arif Habib Limited on Friday. The listed banks posted a combined profit after tax (PAT) of Rs326 billion (USD 1.16 billion) in 1HCY25, reflecting a […]<\/p>\n","protected":false},"author":1,"featured_media":5812,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[2],"tags":[],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t