KARACHI – Pakistani commercial banks have reported a slowdown in profit growth during the first quarter of 2025, reflecting tough market conditions and declining investment returns.
Meezan Bank, the largest Islamic bank in Pakistan, experienced a 10.6% year-on-year decline in profits, falling to Rs22.42 billion. The drop was attributed to reduced earnings from Islamic financing and investments, despite gains in fee income and foreign exchange. Similarly, Bank Islami saw an 18.72% decrease in after-tax profits, impacted by higher operating expenses and a sharp decline in foreign exchange income.
In contrast, the Bank of Punjab (BOP) reported a modest 6% growth in profits, reaching Rs1.79 billion. This was supported by a significant 75% rise in net interest income, although challenges in other revenue streams limited overall growth.
The banking sector’s performance highlights broader challenges, including reduced spreads, lower investment yields, and rising operational costs. As banks navigate these economic pressures, their future profitability remains uncertain.
