National Bank of Pakistan set out a clear direction toward a technology-driven future during its CY25 corporate briefing, focusing on digital expansion, operational efficiency and strengthening its low-cost deposit base. Management highlighted that the institution is gradually shifting away from traditional branch-led expansion despite already operating a network of more than 1,500 branches, including over 300 Islamic banking outlets. The emphasis is now on scaling services through digital infrastructure, supported by a significant increase in capital expenditure that has risen from Rs2.3 billion in CY21 to Rs13.5 billion in CY25. This shift reflects a broader structural change in how the bank intends to serve customers, prioritizing digital channels over physical footprint growth while maintaining cost discipline across operations.
The bank’s financial performance in CY25 provided strong backing for its strategic direction, with profit after tax increasing 3.2 times year-on-year to Rs85.9 billion and earnings per share rising to Rs40.38 compared to Rs12.63 in CY24. This growth was driven largely by a 45% increase in net interest income to Rs248.5 billion and a 30% reduction in non-interest expenses, reflecting tighter operational management. Total assets expanded beyond Rs7.1 trillion, reinforcing its position as Pakistan’s second-largest bank with an estimated 12% market share. Deposits crossed Rs4.4 trillion, marking a 14.6% year-on-year increase, supported by a steady long-term growth trend and a stronger focus on low-cost current and savings accounts. The CASA ratio improved to 81%, while investment holdings rose to Rs4.9 trillion with a conservative portfolio structure dominated by government securities.
Management also highlighted ongoing improvements in efficiency and capital strength, with cost-to-income ratio currently at 40% expected to improve further as digital adoption increases and expansion becomes more controlled. The bank maintained a strong capital adequacy ratio of 26.21% and a leverage ratio of 4.37%, both comfortably above regulatory requirements. Lending activity showed mixed trends, with gross advances declining 3.5% year-on-year to Rs1.6 trillion due to subdued credit demand, bringing the advance-to-deposit ratio down to 36.5%. Despite this, agricultural lending remained a key segment, growing 23.9% to Rs133 billion, reinforcing its role as a major institutional lender in the sector. Islamic banking also recorded rapid expansion, with assets increasing 95% to Rs652 billion and deposits rising 81% to Rs559 billion, supported by an expanding network of over 300 full-fledged Islamic branches and around 350 hybrid branches.
Digital transformation metrics reflected increasing customer migration toward electronic channels, with ATM transaction value reaching Rs1.48 trillion and card activations rising to 2.9 million. Active digital users grew 32% year-on-year, while registered users increased by 21%, indicating sustained adoption of mobile and online platforms. A major milestone supporting this transition was the rollout of a new Core Banking Application in April 2025, positioned as the backbone for future digital operations and fee-based income growth. The bank also reported progress in reducing reliance on Treasury Single Account-linked deposits, while continuing to optimize its liability structure. Dividend distribution of Rs35 per share, representing an 88% payout ratio, was also highlighted as part of CY25 results, supported by regulatory approvals following audit clearance and capital adequacy confirmation.
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