Listed banks post Rs168bn profit for 2Q2026

KARACHI: Pakistan’s listed banks reported profitability of Rs168 billion in second quarter of this calendar year (2Q2026), flat YoY and down 4 percent QoQ. This takes first half of this year (1H2026) earnings to Rs342 billion, flat YoY. According Topline Securities, on a QoQ basis, the decline was driven by a 7 percent increase in non-interest expense to Rs361 billion and a 2 percent decline in Net Interest Income (NII) to Rs527 billion. This was partly offset by 4 percent QoQ growth in non-interest income to Rs177 billion. NII declined 2 percent both YoY and QoQ (down 1 percent YoY in 1H2026), reflecting the lagged repricing impact of the Apr 2026 rate hike, partly cushioned by banks’ focus on current account deposits and volumetric growth. Banks that recorded relatively higher NII growth on YoY basis were JS Bank (JSBL), Bank of Punjab (BOP), Bank Alfalah (BAFL), and Askari Bank (AKBL) to the extent of 6-24 percent YoY. On the other hand, Samba Bank (SBL), Soneri Bank (SNBL), National Bank (NBP), and Habib Metropolitan Bank (HMB) posted declines of 16-31 percent YoY. Non-interest income rose 23 percent YoY and 4 percent QoQ to Rs177bn on higher FX income. AKBL, United Bank (UBL), Bank AL Habib (BAHL), and MCB Bank (MCB) non-interest income grew by 128 percent, 87 percent, 49 percent, and 29 percent YoY, respectively. Non-interest expense increased 15 percent YoY and 7 percent QoQ. The sector cost to income ratio clocked in at 51. 3 percent against 48. 0 percent in the previous quarter and 45. 9 percent in 2Q2025. AKBL, UBL, MEBL and BAHL recorded the highest cost growth of 20-41 percent YoY, primarily reflecting branch expansion and inflation-linked staff costs. The sector recorded a provision reversal of Rs6. 2 billion in 2Q2026, versus a reversal of Rs8billion in 2Q2025 and Rs1. 8billion in 1Q2026, mainly on a Rs3. 8billion reversal by UBL. Excluding this, the sector reversal stands at Rs2. 4billion. The effective tax rate for 2Q2026 stood at 52. 5 percent, compared to 55. 8 percent in 2Q2025 and 52. 4 percent in 1Q2026. Bank-wise, UBL led the sector with earnings of Rs37. 5billion in 2Q2026, followed by MEBL at Rs26. 2billion, Habib Bank (HBL) at Rs18. 4billion, NBP at Rs16. 6billion, and MCB at Rs15. 0billion. On earning growth basis, JSBL posted the highest increase at 704 percent YoY due to low base, followed by AKBL at 91 percent YoY, UBL at 31 percent YoY, and BAFL at 27 percent YoY. On the other hand, Bank of Khyber (BOK), Standard Chartered (SCBPL), HMB, and NBP recorded earning decline of 21-74 percent YoY. While Bank Makramah (BML) posted a loss of Rs3. 9billion. Most banks maintained their quarterly dividend payouts, while MEBL increased dividend payout to Rs8. 0 per share. MCB announced DPS of Rs9. 0 per share, UBL Rs8. 0 per share, HBL Rs6. 0pershare, ABL Rs4. 0pershare, BAHL Rs3. 5pershare, HMB Rs2. 5pershare, AKBL Rs2. 0pershare, and BAFL and FABL Rs1. 5pershare. SCBPL, BOP and BIPL announced half-yearly dividends of Rs3. 0pershare, Rs1. 6pershare and Rs1. 5pershare, respectively. Copyright Business Recorder, 2026

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