KARACHI: The Bank of Khyber (PSX: BOK) posted a profit after tax of Rs1.6 billion for the quarter ended March 31, 2025, more than doubling its earnings compared to Rs772 million in the same period last year, marking a year-on-year increase of 107.52%. The result was powered by stronger net interest margins, a substantial boost in non-mark-up income, and a reversal in provisioning.
Earnings per share rose accordingly to Rs1.38, up from Rs0.67 in the corresponding period of 2024, reflecting a 106% increase and demonstrating the bank’s improved profitability per share.
Net interest income expanded 45.2% year-on-year to Rs5.11 billion. While interest earned declined by over 20% to Rs13.5bn, a sharper fall in interest expenses — down nearly 38% to Rs8.39bn — helped significantly improve spreads.
On the non-core side, non-mark-up income surged 64.05% year-on-year to Rs900 million, bolstered by a Rs520.7m gain on securities and Rs50.97m from derecognition of financial assets. These gains offset weak fee income, which declined nearly 19%, and a sharp 68% fall in foreign exchange income — a segment that had contributed more meaningfully in the previous year.
Operating expenses continued to rise, increasing 15.25% year-on-year to Rs2.72bn, broadly in line with sector-wide inflationary pressures. Still, the bank’s pre-provision profit reached Rs3.28bn, up 93% from the same quarter last year.
A key factor in the bank’s profitability boost was the reversal of Rs118 million in credit loss provisions, compared to a provisioning charge of Rs190 million in 1QCY24. This reversal, likely tied to improved asset quality or recoveries, lifted pre-tax profit to Rs3.4bn — a 125% increase from last year.
After accounting for a 143% rise in taxes to Rs1.8bn, BOK reported net profit of Rs1.6bn.
The strong results helped lift investor sentiment, with the stock gaining 2.1% during the day to close at Rs14.86 on the Pakistan Stock Exchange.
