BOK 1HCY26 profit drops 56%

August 28, 2026 (MLN): The Bank of Khyber (PSX: BOK) reported a 56% decline in its consolidated net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs1.48bn compared to Rs3.37bn in the corresponding period last year.

Reflecting this bottom-line compression, basic and diluted earnings per share (EPS) fell to Rs1.27 for the six-month period, down from Rs2.91 in 1HCY25.

The primary factor weighing on earnings was a contraction in core net mark-up income combined with lower non-interest revenues from securities.

Mark-up/interest earned fell 11% year-on-year to Rs24.53bn, while mark-up expensed contracted by 9% to Rs16.15bn.

Consequently, net mark-up income dropped by 15% to Rs8.38bn compared to Rs9.85bn in 1HCY25.

On the non-interest front, total non-mark-up income fell 60% to Rs972.14m (down from Rs2.42bn).

This contraction was primarily driven by a 97% drop in gains on securities (falling to Rs50.45m from Rs1.50bn last year) and a 20% decline in foreign exchange income (Rs225.56m), which offset an 11% increase in fee and commission income (Rs612.47m).

Driven by core spread compression and securities income reduction, total income contracted 24% to Rs9.35bn.

On the expense side, operating overheads expanded by 11% to Rs6.33bn, pushing total non-mark-up expenses up 13% to Rs6.45bn. As a result, profit before credit loss allowance fell 56% to Rs2.91bn.

Below the pre-provision line, financial results received partial support from a net credit loss allowance reversal of Rs291.58m (though lower than the Rs618.47m provision reversal recorded in 1HCY25). This brought profit before taxation down 56% to Rs3.20bn.

The bank absorbed a 55% lighter taxation expense of Rs1.72bn for the six-month period (down from Rs3.83bn in 1HCY25).

Supported by tax relief and net credit loss reversals, The Bank of Khyber securely closed the half-year period with its net profit standing at Rs1.48bn.

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