Pakistani listed banks posted 8 percent increase in profit of first quarter of current fiscal year 2025-2026, it was reported on Friday.
A report prepared in this regard stated 15 percent increase in non-interest income in which Capital Gains played major part.
United Bank Limited (UBL), and Faisal Bank jointly book Capital Gains worth Rs44.5 billion.
The report further stated that despite decline in interest rate, the banks net interest was stable.
UBL, HBL, ABL and BAHL’s NNI profit was increased by 4 to 6 percent. The Banking sector’s cast to income ratio reached at 48 percent.
The ratio was recorded 50.5 percent during the same period of previous fiscal year. National Bank of Pakistan, Samba Bank, Askari Bank and JS Bank posted 9 to 16 percent decrease in administrative exependiture.
Banking sector records provision reversal of Rs 1.80 billion in Q1 FY26. National Bank posts major provision reversal of Rs 3.40 billion.
The effective tax rate was 52.4 percent, down from 53.3 percent last year. UBL declared top bank with profit of Rs 48.4 billion.
Meezan Bank stands out with a profit of Rs 22.4 billion, National Bank with Rs 16.3 billion and HBL with Rs 16.2 billion.
Faysal Bank’s NII increased by 11 percent and Bank Islami’s by 10 percent. Bank of Punjab records 47% increase in profit on an annual basis.
UBL’s profit increased by 18%, ABL by 10% and MCB by 7%. MCB declared a dividend of Rs 9, UBL Rs 8 and Meezan Bank Rs 7.5 per share.
Topline maintains “Market Weight” rating on banking sector Meezan Bank and Bank Alfalah named top picks.
