These Are the Top 10 Most Profitable Banks in Pakistan

In 2023, the banking industry performed exceptionally well, setting new benchmarks and surpassing historical performance. A notable feature was the notable rise in dividends, which experienced a remarkable 84% increase from the previous year.

The banking sector surpassed the PSX in 2023, achieving an incredible 85 percent return as opposed to the index’s 55 percent, thanks to outstanding price performance. The industry’s profitability enjoyed record-breaking growth.

Arif Habib Limited claims that a notable growth in interest income—an astounding 85% YoY increase—was the primary factor for the notable improvement in profitability. A number of variables, including a 600 basis point increase in the policy rate and a 24% increase in deposits during

In order to increase their revenue and improve their bottom line, banks intend to create distinct subsidiaries in order to build out their foreign exchange activities.

Pakistan’s top ten banks by profitability are listed below:

1. Bank Meezan

The most profitable bank in Pakistan was still Meezan. The leading Islamic bank reported an astounding 84.5 billion rupee profit in 2023 as opposed to 45 billion in 2022, a whopping 87 percent gain in a single year.

With assets and deposits totaling Rs. 3 trillion and Rs. 2 trillion, respectively, the bank has accomplished several noteworthy milestones by year’s end. The bank added over 1,000 branches and ATMs to its nationwide network. A total dividend of Rs. 28 per share was also paid to the bank’s stockholders. Additionally, throughout the reviewed year, the value of the shares climbed from 25.1 to 47.1.

2. MCB Bank

MCB Bank remained in second place. From Rs. 34.45 billion in 2022 to Rs. 65.3 billion in 2023, it achieved a fantastic 89 percent increase in profitability. Additionally, the bank raised its ownership stake in the asset management business to 81 percent, which considerably boosted the bank’s earnings. Compared to the EPS of Rs. 27.6 recorded the previous year, the earnings per share grew to Rs. 50.1. Shareholders received dividend payments from the bank of Rs. 21 per share.

3. Bank Habib Ltd.

After growing by 68 percent in the previous year, Habib Bank Limited recorded its largest-ever profit in 2023, totaling Rs. 57.8 billion. At Rs. 4.1 trillion and above Rs. 5 trillion, respectively, the bank’s deposits and assets reached all-time highs. Compared to 2022, when earnings per share was Rs. 23.23, in 2023 they were Rs. 39.32. Each share of the bank was given a dividend of Rs. 9.25.

In order to take advantage of fresh business prospects in the agri-economy, the bank added a new specialized subsidiary to its operations in the agriculture sector. Other banks are expected to follow suit. The Pakistan Super League became a national brand thanks to the bank’s leadership continuing its tradition of aiding the country’s interests.

4. Bank of America, Inc.

In 2023, United Bank Limited recorded its highest-ever year profit after tax of Rs. 56.47 billion, a 74% increase over the same period the previous year. With a maximum value of Rs. 44 per share in a calendar year, the bank continued to be liberal in its dividend payments to shareholders. The bank’s share value rose in a year from 25.4 to 47. By the end of 2023, the bank had amassed over Rs. 5 trillion in assets and about Rs. 2.2 trillion in deposits. The bank’s management began putting a lot of effort into starting up its currency exchange business the same year. The bank remained in fourth place in 2023, same like it did in 2022.

5. National Bank of Pakistan

Additionally, the National Bank of Pakistan (NBP) saw a notable increase in profitability, with its bottom line reaching a record-breaking Rs. 53.3 billion.

6. Standard Chartered Bank

Out of all the big banks, Standard Chartered Bank had the highest profit growth, rising by 115% year over year. From an all-time high profit of Rs. 19.8 billion in 2022 to Rs. 45.6 billion in 2023, the bank’s profitability increased.

7.Allied Bank of Pakistan

One of the nation’s oldest banks, Allied Bank of Pakistan (ABL), experienced a respectable 91 percent increase in profits in 2023 over the previous year. From Rs. 21.9 billion in 2022 to Rs. 40.6 billion in 2023, the bank’s profitability climbed. The bank declared a 35.53 earnings per share. At the conclusion of the quarterly results, it declared a dividend income of Rs. 12 per share for the whole year. Despite historically strong profit growth, the bank’s ranking slid from fifth to sixth.

8. Alfalah Bank

An over 100% increase from the previous year’s Rs. 18.206 billion profit before tax was announced by the bank. An rise from Rs. 10.27 to Rs. 23.12 has been observed in earnings per share (EPS). A total dividend of Rs. 8 per share was distributed by it in 2023.

A digitally equipped lifestyle branch of the bank has been formed. It also purchased almost 7% of a BNPL company’s shares. Both one trillion rupees in deposits and one thousand branches are significant benchmarks that the bank has attained.

9.Bank Al Habib

The year 2023 saw Bank Al Habib record a respectable 113% increase in profits. From the highest-ever profit the bank had recorded in 2022 of Rs. 16.5 billion, it grew to Rs. 35.3 billion in 2023. At 31.7, the bank’s earnings per share also increased. Every share of the bank received a dividend of Rs. 14 from the bank during the year. In contrast to the previous year, the bank’s rating held steady in 2023.

10. Metropolitan Bank of Habib

In addition, Habib Metro Bank declared its largest-ever profit in 2023—Rs. 25.2 billion—in contrast to the Rs. 14.92 billion it reported in 2022. The bank’s profits per share increased to Rs. 23.4 as well. The amount of dividends paid to shareholders also increased significantly, by Rs. 10.50 per share. The bank was granted permission to establish an exchange company as a subsidiary, just like its rival banks.

Leave a Comment