Pakistan’s Banking Landscape Reshaped in Q1 2025 :
In a significant shake-up, United Bank Limited (UBL) has become Pakistan’s most profitable bank in Q1 2025, reporting a record-breaking PKR 36.1 billion in profits.
Here's the updated ranking of the top 5 most profitable banks this quarter:
1. United Bank Limited (UBL)
Profit After Tax:
PKR 36.1 Billion
Summary:
United Bank Limited (UBL), one of Pakistan’s largest commercial banks, posted a consolidated Rs36.11 billion profit-after-tax (PAT) during the quarter ending March 31, 2025, up massive 124% from the PAT of Rs16.14 billion in the same period of 2024.
2. Meezan Bank Limited (MEBL)
Profit After Tax:
PKR 22.42 Billion
Summary:
Meezan Bank (MEBL), the country’s largest Islamic bank, posted consolidated profit after tax (PAT) of Rs22.42 billion for the quarter that ended March 31, 2025, down by 12% from Rs25.08 billion in the same period of the preceding year.
3. National Bank of Pakistan (NBP)
Profit After Tax:
PKR 22.1 Billion
Summary:
The National Bank of Pakistan (NBP) reported a 14% profit growth. NBP specifically saw earnings of Rs22.1 billion in 1Q2025. While overall net interest income (NII) increased by 23% year-on-year, interest income for the sector as a whole decreased by 19% year-on-year.
4. Habib Bank Limited (HBL)
Profit After Tax:
PKR 16.6 Billion
Summary:
Habib Bank Limited (PSX: HBL) has posted a consolidated profit after tax of Rs16.63 billion for the quarter ended March 31, 2025, marking a 10.52% increase compared to Rs15.04bn in the same period last year..Since the announcement, the company’s stock price has gone up by almost 7%, seeing a significant increase in its trading volume.
5. MCB Bank Limited
Profit After Tax:
PKR 14.7 billion
Summary:
MCB Bank Limited (PSX: MCB) reported a 17.78% year-on-year decline in profit attributable to equity shareholders for the first quarter ended March 31, 2025, despite steady non-markup income growth and a generous dividend payout. The bank posted a net profit of Rs 14. 65 billion.
How do banks make money?
They earn interest on the securities they hold. They earn fees for customer services, such as checking accounts, financial advice, loan servicing, and the sale of other financial products (e.g., insurance and mutual funds).
Banks collect savings from households and businesses (savers) and use these funds to lend to people who want to borrow (borrowers). Banks must pay interest on the funds they collect from savers, which is one of their main funding costs.
On average, banks have a net profit margin somewhere between 15% and 30% (as seen in the rates in this article). Retail banks are often at the lower end due to higher operational costs, and investment banks earn higher margins through advisory services and trading activities.
