Although the State Bank of Pakistan reduced their interest rates substantially within the last year, the banks have managed to show overall profits. While some banks registered profits and others showed a significant decrease.
Banks have made a profit of Rs 210 billion in the first half of the current fiscal year, which is a 10 per cent growth when compared with the same period last year. Quarterly, the banks recorded Rs102 billion in the second quarter of 2025 (April June) and this is a 5 percent decrease over the first quarter (January March 2025) but an increase of 7 percent as compared to the first quarter of 2024.
Banking sources claim that banks were making a lot of money without effort when the State Bank’s interest rate was at its highest point of 23%. At that time, banks were making respectable profits by lending to the government, which was the biggest borrower from the banking industry. But as interest rates have gradually fallen, banks’ profit margins have also begun to contract.
Banks Major Profit & Loss
A recent analysis by Topline Securities reveals mixed financial performance among major Pakistani banks during the first six months of 2025. While some institutions posted impressive gains, others faced notable declines.
Banks with Profits
- United Bank Limited (UBL) emerged as the top performer, with its earnings surging by 137% compared to the same period last year.
- Habib Bank Limited (HBL) also showed positive momentum, recording a 7% increase in profit.
Banks Facing Profit Declines
Several banks struggled to maintain profitability:
- Bank Alfalah experienced a 35% drop in earnings.
- MCB Bank saw its profit fall by 19%.
- Meezan Bank reported an 18% decrease.
- Bank Al Habib Limited posted a 5% reduction in profit.
