Record breaking profitability streak continues for Pakistani banks

Pakistan’s listed banks have chalked up their highest-ever half-year profit in the first six months of calendar 2025, extending a streak that began last year and shows little sign of fading. Aggregate profit after tax for KSE-100 index banks reached Rs326 billion in first half of 2025, up 19% year on year, with the second quarter alone contributing Rs160 billion, a 23% jump over the same period of 2024.

The core driver remained net interest income (NII), which climbed to Rs1.0 trillion for the half, up 22%, helped by larger balance sheets and robust low-cost deposit mobilisation. Non-mark-up income added resilience at Rs255 billion, up 7%, with fee income rising to Rs141 billion on the back of digital and trade activity, FX income holding at Rs49 billion, and gains on securities edging up to Rs39 billion as banks tactically managed their investment books.

Operating expenses rose in a still-elevated inflation environment to Rs553 billion, but the cost-to-income ratio stayed broadly contained at 46% versus 45.4% a year earlier, signalling efficiency gains even as networks and technology spend continued. These figures, set out across the opening pages and the income-breakdown exhibits of the report, explain how the sector delivered record profitability despite a shifting rate backdrop.