National Bank of Pakistan (PSX: NBP) reported a profit of Rs. 32 billion in the first half of calendar year 2026, down 24 percent compared to Rs. 42 billion in the same period last year.
Still, earnings per share for the period reached Rs. 15.27, according to a review by Arif Habib Limited. The bank earned approximately Rs. 16 billion in the second quarter, down 21 percent year-on-year (YoY) but up 1 percent on a quarter-on-quarter (QoQ) basis.
The bank’s second quarter earnings were pressured mainly by higher operating expenses, while stable total income provided some support. The results review did not report any dividend declaration for the period.
National Bank’s net interest income stood at Rs. 48 billion in the second quarter, down 21 percent YoY and 7 percent QoQ. The decline was driven by a 7 percent YoY drop in net interest income to Rs. 183 billion, while interest expense fell 1 percent to Rs. 135 billion.
Non-fund income during the quarter increased 22 percent YoY, supported by Rs. 5.8 billion in capital gains and a 112 percent increase in foreign exchange income to Rs. 3.2 billion. Total income, however, settled at Rs. 68 billion during the quarter.
Operating expenses rose 15 percent YoY to Rs. 36 billion, taking the bank’s cost-to-income ratio to approximately 54 percent, compared with around 42 percent in the same quarter last year. The effective tax rate stood at approximately 51 percent during the quarter.
On the balance sheet, deposits declined 10 percent YoY but increased 3 percent QoQ to Rs. 4.2 trillion. Investments rose 13 percent YoY to Rs. 5.7 trillion, while borrowings surged 87 percent to Rs. 2.8 trillion.
The bank’s investment-to-deposit ratio stood at 134 percent and its advance-to-deposit ratio at 31 percent in the second quarter.
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