The banking sector in Pakistan saw fluctuations in policy rates over the past year, yet many banks reported substantial profits and asset growth despite facing various challenges.

Profitability in the sector was bolstered by government-issued Sukuks for budgetary support and development projects, allowing banks to maintain impressive performance by year-end. Overall, bank profits exceeded Rs. 600 billion, while tax contributions surpassed profits, totaling over Rs. 650 billion.

In 2024, banks remained prominent on the Pakistan Stock Exchange (PSX), drawing considerable attention in share trading and market capitalization.

Meezan Bank

Meezan Bank, Pakistan’s largest Islamic bank, topped the profitability rankings, achieving a record profit of over Rs. 100 billion in 2024, the highest in the history of the banking sector. The bank’s profit grew by 20 percent year-on-year, reaching Rs. 101.5 billion, compared to Rs. 84.5 billion in 2023. Its pre-tax profit stood at Rs. 222 billion, contributing Rs. 121 billion in taxes. Earnings per share increased to Rs. 57 from Rs. 47, with a payout of Rs. 28 announced for the year.

United Bank Limited

United Bank Limited regained its position as the second most profitable bank, with profits surging to Rs. 75.7 billion in 2024, up from Rs. 56.4 billion in 2023, reflecting a 34 percent growth. The bank reported a pre-tax profit of Rs. 150 billion and paid Rs. 74.3 billion in taxes. Earnings per share rose to Rs. 61 from Rs. 45, and the bank distributed dividends of Rs. 44 to shareholders. Additionally, it has transitioned its operations to Islamic banking in Khyber Pakhtunkhwa and Balochistan.

MCB Bank

MCB Bank slipped to third place, reporting a decline in profitability to Rs. 57.6 billion, down from the previous year. The bank’s earnings per share decreased to Rs. 48, and it announced a dividend of Rs. 36. MCB reported a pre-tax profit of Rs. 118.4 billion and paid over Rs. 60 billion in taxes.

Habib Bank Limited

Habib Bank Limited (HBL) dropped to fourth position, with flat profit growth of Rs. 57.8 billion. HBL’s balance sheet grew to Rs. 6.1 trillion, with total deposits at Rs. 4.4 trillion. The bank reported a pre-tax profit of Rs. 120 billion and paid Rs. 62.5 billion in taxes. Its share value stood at Rs. 38, and it announced a dividend of Rs. 16.5.

Standard Chartered Bank

Standard Chartered Bank achieved its highest-ever profit of Rs. 46 billion, reflecting a 7.9 percent annual growth. The bank improved its ranking from sixth to fifth among the most profitable banks. Its earnings per share were Rs. 11.90, with a dividend of Rs. 9. The pre-tax profit was Rs. 100 billion, contributing Rs. 54 billion in taxes. The bank is also working on transitioning to Islamic banking.

Allied Bank Limited

Allied Bank Limited moved up to sixth place, reporting a profit of Rs. 43 billion, the highest in its history. The bank’s pre-tax profit was Rs. 87 billion, with tax payments of Rs. 44.8 billion. Its share value stood at Rs. 37.5, and it paid a dividend of Rs. 16 per share.

Bank Al Habib

Bank Al Habib rose to seventh position, recording a profit of Rs. 39 billion, a growth of over 12 percent. The bank’s pre-tax profit was Rs. 83.8 billion, with tax contributions exceeding Rs. 43.9 billion. Its share value increased from Rs. 31.7 to Rs. 35.8, and it declared a dividend of Rs. 17 per share.

Bank Alfalah

Bank Alfalah reported a profit of Rs. 38.3 billion, reflecting over 5 percent growth. The bank’s pre-tax profit was Rs. 83 billion, with a tax contribution of Rs. 44.7 billion. Its share value rose from Rs. 23.1 to Rs. 24.3, and it paid a dividend of Rs. 8.5 per share.

National Bank of Pakistan

The National Bank of Pakistan (NBP) fell from fifth to ninth position, with profits dropping to Rs. 26.8 billion from Rs. 56.8 billion. The bank’s pre-tax profit was Rs. 56.6 billion, and it paid Rs. 29.8 billion in taxes. Earnings per share decreased to Rs. 12 from Rs. 24, and it paid a cash dividend of Rs. 8 per share.

Habib Metro Bank

Habib Metro Bank maintained its position among the top 10 profitable banks, reporting a profit of Rs. 24.6 billion, showing flat growth compared to the previous year. The bank’s pre-tax profit was Rs. 56.7 billion, with tax payments totaling Rs. 27.9 billion. Its share value stood at Rs. 23, and it paid a dividend of Rs. 12 per share.