NBP strengthens capital, focuses on low-cost deposits, digital growth

October 08, 2025 (MLN): The National Bank of Pakistan (NBP) is steering toward sustained profit growth and a stronger capital position as the management emphasized a continued focus on low-cost deposits and digital transformation.

In a recent management meeting with Topline Securities, NBP CEO Rehmat Ali Hasnie and CFO Abdul Wahid Sethi highlighted that the bank remains well-positioned to maintain profitability despite monetary policy shifts.

They expressed confidence that the current trend in profit growth would persist, citing the bank’s strategy to expand current accounts and reduce high-cost borrowings.

NBP has reportedly cut its borrowings by Rs400 billion over the last six months, while maintaining a Capital Adequacy Ratio (CAR) of 27%, well above the regulatory requirement of 14%.

This robust position, management noted, provides ample room for dividend payouts in the coming years.

Addressing the ongoing Shariah conversion of banks, NBP’s leadership said they have already submitted transformation plans.

However, the full conversion hinges on the government and the central bank’s ability to make government securities Shariah-compliant, given their large share in bank assets.

On the digital front, the bank has shifted its focus from branch expansion to online platforms.

"We have developed a dedicated portal for corporate customers, management stated, noting that digital transaction volumes have reached Rs4.7 trillion over the past five years, generating Rs13 billion in non-funded income.

Despite subdued loan demand amid high interest rates, NBP remains optimistic about sustaining earnings through fee-based income and equity investments, acquired at attractive levels earlier in the year.

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