NBP stuns market as 9MCY25 profit jumps 16x

October 29, 2025 (MLN): National Bank of Pakistan (PSX: NBP) reported a profit after taxation of Rs66.33bn for the nine months ended September 30, 2025, surging 16.5 times from Rs4.03bn in the corresponding period last year.

Earnings per share increased to Rs30.88 compared to Rs1.72 in SPLY.

Despite the strong performance, investors and market participants were widely anticipating a dividend following the exceptional financial results however, no payout was declared at this stage.

The absence of an interim dividend surprised the market, particularly given the bank’s robust profitability

Mark-up/return/interest earned decreased 28% year-on-year to Rs601.29bn from Rs838.05bn, reflecting lower yields during the period. Mark-up/return/interest expensed fell 44% to Rs409.94bn from Rs729.61bn.

Net mark-up/return/interest income increased 75% to Rs191.34bn against Rs109.44bn in prior year.

Fee and commission income rose 27% to Rs24.8bn, while dividend income declined 21% to Rs3.34bn from Rs4.22bn last year.

Foreign exchange income decreased 8% to Rs4.97bn from Rs5.4bn. The bank reported no income/(loss) from derivatives in either period. Gain on securities increased 22% to Rs12.86bn from Rs10.51bn.

The bank reported a net loss on derecognition of financial assets measured at amortized cost of Rs983.1m in SPLY, which was absent in the prior period.

Other income increased 2.8 times to Rs698.1m from Rs251.8m.

Total non-markup/interest income increased 13% to Rs46.07bn from Rs40.71bn last year.

Total income increased 58% to Rs237.41bn from Rs150.15bn.

Operating expenses increased 11% to Rs92.07bn from Rs83.02bn. Other charges increased 37% to Rs56.5m from Rs41.4m. Total non-markup/interest expenses climbed 11% to Rs92.12bn from Rs83.06bn last year.

Profit before credit loss allowance/provisions stood at Rs145.29bn, up 2.2 times from Rs67.09bn.

Credit loss allowance/provisions and write offs (reversal of provisions/credit loss allowance) (net) increased 11% to Rs2.09bn from Rs1.88bn last year.

Profit/(loss) before taxation stood at Rs143.2bn compared to Rs16.19bn, an increase of 7.8 times.

Taxation surged 5.3 times to Rs76.87bn from Rs12.16bn in the prior period.

The bank concluded 9MCY25 with a net profit of Rs66.33bn. The exceptional profit growth was driven by a dramatic 75% expansion in net mark-up income despite lower interest rates, improved fee-based income, and strong gains on securities, demonstrating the bank's ability to effectively manage its asset-liability mix and diversify revenue streams in a changing interest rate environment.

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