Pakistan Banks’ Profit Rises To Rs. 370 Billion in First Half Of 2026

Pakistan's banking sector experienced a slight increase in profitability during the first half of 2026, with total profits reaching Rs. 370 billion, according to the State Bank of Pakistan's Mid-Year Performance Review of the Banking Sector. This marks a modest rise from Rs. 365 billion during the same period in the previous year.

While net interest income dipped slightly to Rs. 1,140 billion from Rs. 1,157 billion, noninterest income surged to Rs. 370 billion from Rs. 289 billion, driven by foreign exchange dealings, gains from securities sales, and higher fees and commissions. These gains were largely attributed to increased remittances, a higher volume of trade-related letters of credit, and elevated oil prices.

The banking sector's capital adequacy ratio stood at 19.6 percent, indicating a robust solvency position. Stress tests revealed that large systemically important banks would remain solvent and withstand severe economic shocks. The sector's balance sheet expanded by 9.1 percent to Rs. 68,997 billion, primarily due to increased investments in government securities.

Lending to small and medium-sized enterprises grew, supported by the government's subsidized housing scheme. Despite renewed conflict in the Middle East and its impact on market sentiment, the foreign exchange market remained stable due to stronger central bank reserves and inflows from the International Monetary Fund. The banking sector is expected to maintain steady growth in the second half of 2026, supported by lower inflation, currency stability, and economic recovery.