SBP reports 20pc decline in FY26 profit

The State Bank of Pakistan (SBP) experienced a significant decline in its profit by 20 percent during the fiscal year 2025-26, according to the bank's recently released financial statements. The net profit for FY26 was reported at Rs1.99 trillion, a stark drop from Rs2.499 trillion in the previous fiscal year, FY25. This decrease of Rs506 billion, or 20 percent, was primarily attributed to lower earnings compared to the preceding year.

The surplus profit of Rs1.932 trillion, after accounting for statutory requirements, has been remitted to the Federal Government. The unconsolidated financial statements, compliant with IFRS Accounting Standards, were prepared and forwarded to both the Federal Government and the Majlis-e-Shoora (Parliament) as mandated by Section 40(3) of the State Bank of Pakistan Act, 1956.

The bank's unconsolidated financial statements show a decline in discount, interest, mark-up, and profit earned on financial assets, falling to Rs2.037 trillion in FY26 from Rs2.801 trillion in FY25. Additionally, banknotes printing charges rose from Rs24.667 billion in FY25 to Rs29.1 billion in FY26. These charges are paid to Pakistan Security Printing Corporation (Private) Limited, a wholly-owned subsidiary of the SBP, at pre-agreed rates.

As the central bank of Pakistan, the SBP is legally obligated to maintain domestic price stability, enhance the stability of the country's financial system, and support the government's economic policies to foster development and maximize the utilization of the nation's productive resources.