Despite economic fluctuations and changing policy rates, Pakistan’s banking sector experienced significant growth in 2024. Several banks recorded strong profits, driven by higher deposits, government Sukuks, and investment strategies.
Although some banks faced tax challenges due to low Average Deposit Rates (ADR), many managed to optimize their lending strategies to maintain profitability. Islamic banks also played a key role, offering Shariah-compliant financial solutions.
By the end of 2024, total banking sector profits surpassed Rs. 600 billion, while tax contributions exceeded Rs. 650 billion. Banks also remained a major focus at the Pakistan Stock Exchange (PSX), with high trading volumes and strong market capitalization.
Here are Pakistan’s top 10 most profitable banks of 2024:
1: Meezan Bank – The Most Profitable Bank in Pakistan
As Pakistan’s largest Islamic bank, Meezan Bank set a historic record by becoming the most profitable bank in 2024, reporting a net profit of Rs. 101.5 billion. This represents a 20% increase from Rs. 84.5 billion in 2023.
- Pre-tax profit: Rs. 222 billion
- Tax contribution: Rs. 121 billion
- Earnings per share (EPS): Rs. 57
2: United Bank Limited (UBL) – Strong Comeback
United Bank Limited (UBL) climbed to the second position, replacing MCB Bank. The bank’s profit increased by 34%, reaching Rs. 75.7 billion, compared to Rs. 56.4 billion in 2023.
- Pre-tax profit: Rs. 150 billion
- Tax contribution: Rs. 74.3 billion
- EPS: Rs. 61
- Dividend payout: Rs. 44 per share
UBL has also expanded its Islamic banking services, fully transitioning its operations to Shariah-compliant banking in Khyber Pakhtunkhwa (KPK) and Balochistan.
3: MCB Bank – Slight Decline in Profitability
After holding the second position in 2023, MCB Bank moved to third place in 2024 due to a Rs. 2 billion decline in profits. The bank reported a profit of Rs. 57.6 billion for the year.
- Pre-tax profit: Rs. 118.4 billion
- Tax contribution: Rs. 60 billion
- EPS: Rs. 48
- Dividend payout: Rs. 36 per share
4: Habib Bank Limited (HBL) – Consistent Growth
Habib Bank Limited (HBL) fell to fourth place, with profits of Rs. 57.8 billion in 2024.
- Total assets: Rs. 6.1 trillion
- Total deposits: Rs. 4.4 trillion
- Pre-tax profit: Rs. 120 billion
- Tax contribution: Rs. 62.5 billion
- EPS: Rs. 38
- Dividend payout: Rs. 16.5 per share
5: Standard Chartered Bank – Record Profits
Standard Chartered Bank achieved its highest-ever profit of Rs. 46 billion, securing the fifth position.
- Pre-tax profit: Rs. 100 billion
- Tax contribution: Rs. 54 billion
- EPS: Rs. 11.90
- Dividend payout: Rs. 9 per share
The bank is also shifting towards Islamic banking, preparing for the financial sector transformation by 2028.
6: Allied Bank Limited (ABL) – Historic Growth
Allied Bank Limited (ABL) moved up from seventh to sixth place, posting record profits of Rs. 43 billion.
- Pre-tax profit: Rs. 87 billion
- Tax contribution: Rs. 44.8 billion
- EPS: Rs. 37.5
- Dividend payout: Rs. 16 per share
7: Bank Al Habib – Consistent Performance
Bank Al Habib improved its ranking from ninth to seventh place, reporting its highest-ever profit of Rs. 39 billion, reflecting a 12% growth.
- Pre-tax profit: Rs. 83.8 billion
- Tax contribution: Rs. 43.9 billion
- Share value: Rs. 35.8
- Dividend payout: Rs. 17 per share
8: Bank Alfalah – Continued Expansion
Bank Alfalah maintained its profitability, reporting Rs. 38.3 billion in profits, with a 5% growth from the previous year.
- Pre-tax profit: Rs. 83 billion
- Tax contribution: Rs. 44.7 billion
- Share value: Rs. 24.3
- Dividend payout: Rs. 8.5 per share
9: National Bank of Pakistan (NBP) – Declining Profits
National Bank of Pakistan (NBP) slipped to ninth place, with its profits dropping to Rs. 26.8 billion in 2024.
- Pre-tax profit: Rs. 56.6 billion
- Tax contribution: Rs. 29.8 billion
- EPS: Rs. 12
- Dividend payout: Rs. 8 per share
This marks a significant decline from Rs. 56.8 billion in 2023, reflecting challenges in revenue generation.
10: Habib Metro Bank – Stable Performance
Despite flat profit growth, Habib Metro Bank remained in the top 10, posting Rs. 24.6 billion in profits.
- Pre-tax profit: Rs. 56.7 billion
- Tax contribution: Rs. 27.9 billion
- Share value: Rs. 23
- Dividend payout: Rs. 12 per share
Future Outlook – Shift Towards Islamic Banking
With the 26th Constitutional Amendment mandating the elimination of interest-based banking by 2028, the Pakistani banking sector is preparing for a major shift towards Shariah-compliant financial services.
Banks with Islamic banking operations are expected to benefit the most, particularly in government-backed Sukuk investments. This transition will reshape Pakistan’s financial landscape, offering new growth opportunities for Shariah-compliant banking institutions.
Conclusion
Despite economic uncertainties, Pakistan’s banking sector demonstrated remarkable resilience in 2024. Islamic banking, government-backed Sukuks, and digital banking solutions played a crucial role in driving record-breaking profits for several financial institutions.
As 2025 approaches, banks are likely to adapt to evolving financial policies, expand their Islamic banking networks, and continue investing in digital transformation to enhance profitability.
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