The banking sector in Pakistan is facing plethora of challenges and crises amid economic crisis. Banks are facing high levels of non-performing Loans, Liquidity Challenges, Risk Management, and Political Instability.

Despite the economic challenges, the banking sector hits new milestones. A recent report was the significant 84 percent increase in dividends compared to the previous year.

In the year 2023, Pakistan’s banking sector saw unprecedented growth, with performance leading to returns that outpaced Stock Market. Commercial banks got 85 percent return compared to the index’s 55 percent.

A report by Arif Habib Corporation Ltd. revealed profitability surge was primarily driven by YoY surge in in interest income. Banks not only shattered record profits, they also faced historically high tax payments.

Most Profitable Banks in Pakistan

Meezan Bank

Pakistan’s largest Islamic bank Meezan Bank remains at top with record profits of Rs84.5 billion, marking an 87 percent YoY increase from Rs45 billion in 2022.

Meezan Bank assets touched Rs3 trillion and deposits Rs2 trillion. The bank advanced its network to over 1,000 branches and ATMs nationwide. Shareholders received dividend of Rs28 per share, and the share value rose from 25.1 to 47.1 during the year.

MCB Bank

The multinational commercial bank MCB retains the runner-up slot, witnessing impressive profitability growth of 89pc, reaching Rs65.3 billion compared to Rs.34.45 billion in 2022.

MCB also raised its shareholding in the asset management company to 81pc, a move that greatly boosted its profits.

Habib Bank Limited

Pakistan’s oldest, and the first commercial bank HBL Habib Bank Limited achieves its highest-ever profit of Rs57.8 billion in 2023, marking a 68pc growth over previous year.

HBL reached record values in assets and deposits, exceeding Rs5 trillion and Rs4.1 trillion, respectively.

United Bank Limited

United Bank Limited UBL also moves up, raking its highest-ever annual profit of Rs56.47 billion in 2023, marking a 74 percent surge as compared to previous year.

UBL continues progress in its generous dividend payouts, reaching a record value of Rs.44 per share in a calendar year. The bank’s share value also slides up to 47 from 25.4 within a year.

The commercial bank’s assets ballooned to over Rs5 trillion and deposits to nearly Rs2.2 trillion.

National Bank of Pakistan

National Bank of Pakistan (NBP) were among top 5 as the Pakistani government-owned multinational commercial bank reached a record bottom line of Rs53.3 billion – over 70pc increase from the previous year’s profit of Rs30.9 billion.

The bank’s assets also reached a record high of over Rs6.5 trillion, while deposits surged to over Rs3.6 trillion.

Standard Chartered Bank

Standard Chartered Bank witnessed 115 percent increase on year-to-year basis as profitability surged to Rs45.6 billion in 2023 – marking the bank’s highest-ever profit.

The leading international cross-border bank reached milestone of Rs1 trillion in assets, with deposits growing to Rs720 billion.

In 2023, earnings per share of Standard Chartered increased by over 100 percent, rising from 5.1 to 11.

Allied Bank of Pakistan

The commercial bank experienced significant profit growth of 90 percent in 2023. The bank profits increased to Rs40.6 billion from Rs21.9 billion, with earnings per share reaching 35.53.

Bank Alfalah

Bank Alfalah Limited, formerly Habib Credit and Exchange Bank, reported a profit after tax of Rs36.45 billion, a significant increase from Rs18.2 billion the previous year, representing over 100 pc growth.

Earnings per share saw incease of Rs23.12 from Rs10.27, and a total dividend of Rs8 per share was paid in 2023.

Bank Al Habib

Pakistani commercial bank owned by the Dawood Habib Family saw considerable profit growth of 113 pc in 2023.

The bank’s profit moved up to Rs35.3 billion in 2023 as compared to Rs16.5 billion reported in 2022. Bank Al Habib’s earnings per share soared to 31.7. The bank paid out Rs14 dividends per share to its shareholders across the year.

Habib Metro Bank

Habib Metro Bank, a Pakistani subsidiary of Swiss bank Habib Bank AG Zurich, posted its highest-ever profit of Rs25.2 billion last year, as compared to Rs14.92 billion reported in 2022.

The earnings per share of the bank also improved to Rs23.4 while dividend amount received by shareholders also showed a marked growth of Rs10.50 per share.