These Are the Top 10 Most Profitable Banks in Pakistan in 2024

Banks in Pakistan saw fluctuations in policy rates, yet a significant number of banks reported substantial profits and asset growth. The banking sector faced various challenges in the outgoing year. Higher deposit rates attracted extraordinary inflows of funds, which led to increased tax liabilities due to low Average Deposit Rates (ADR). Nonetheless, many banks manipulated their deposits as loans given to the private sector to avoid tax implications, including Islamic banks that claimed to engage in ethical banking. Additionally, profitability was driven by Sukuks issued by the government for various budgetary support and development projects. As a result, banks managed to maintain their performance with impressive results by the end of the year. Overall, bank profits exceeded Rs. 600 billion, while tax contributions surpassed profits, totaling over Rs. 650 billion. In 2024, banks remained in the spotlight at the Pakistan Stock Exchange (PSX), attracting significant attention in share trading and market capitalization. Here is the last of the banks: Pakistan’s largest Islamic bank topped the list of banks with the highest profitability, setting a unique record by achieving a profit of over Rs. 100 billion in 2024, the highest ever in the history of the banking and corporate sectors. The bank registered a profit growth of 20 percent on an annual basis, surging to Rs. 101.5 billion in 2024, compared to profits of Rs. 84.5 billion reported in 2023. The bank’s pre-tax profit stood at Rs. 222 billion in 2024, resulting in a substantial tax contribution of Rs. 121 billion to the government. The bank announced a payout of Rs. 28 during the year, and earnings per share increased to Rs. 57 by the end of 2024, up from Rs. 47. United Bank Limited regained its position as the second most profitable bank in 2024, improving from fourth place last year and replacing MCB Bank. The bank’s profit surged to Rs. 75.7 billion in 2024, up from Rs. 56.4 billion reported in 2023, reflecting a 34 percent growth in profitability. The bank reported a pre-tax profit of Rs. 150 billion and contributed Rs. 74.3 billion in taxes to the national treasury. Earnings per share increased to Rs. 61, up from Rs. 45, and the bank paid out dividends of Rs. 44 to its shareholders. Additionally, the bank has accelerated its transition to Islamic banking, having migrated its entire banking operations from conventional to Shariah-compliant in Khyber Pakhtunkhwa (KPK) and Balochistan. MCB Bank slipped to third position from second in 2024, reporting a decline of over Rs. 2 billion in profitability compared to the previous year, with profits standing at Rs. 57.6 billion. The bank’s earnings per share (EPS) also decreased to Rs. 48, down from Rs. 20. It announced a dividend of Rs. 36 for its shareholders over the year. The bank reported a pre-tax profit of Rs. 118.4 billion and paid more than Rs. 60 billion to the government on various accounts in 2024. HBL dropped to fourth position in 2024, down from third place last year. The bank reported flat profit growth in 2024, with profits standing at Rs. 57.8 billion. In 2024, HBL’s balance sheet grew to Rs. 6.1 trillion, with total deposits closing at Rs. 4.4 trillion by the end of the year. The bank also reported a pre-tax profit of Rs. 120 billion and paid Rs. 62.5 billion in taxes. HBL’s share value stood at Rs. 38, and it announced a dividend of Rs. 16.5 for shareholders. Standard Chartered Bank reported its highest-ever profit of Rs. 46 billion, reflecting a 7.9 percent annual growth. The bank improved its position from sixth to fifth among the most profitable banks in Pakistan. The bank’s earnings per share (EPS) stood at Rs. 11.90, and its dividend income to shareholders was Rs. 9. The pre-tax profit of the bank was Rs. 100 billion, while it contributed Rs. 54 billion in taxes to the government. Reportedly, the bank is aggressively working on transitioning to Islamic banking from its current banking structure. Allied Bank Limited jumped to sixth place from seventh in 2024. It also improved its profitability to Rs. 43 billion, up from Rs. 40 billion—the highest-ever profit in ABL’s history. The bank earned a pre-tax profit of Rs. 87 billion and paid Rs. 44.8 billion in taxes to the government. The share value of the bank stood at Rs. 37.5, and it paid a dividend of Rs. 16 per share to its shareholders. Bank Al Habib jumped to seventh position in terms of profitability, up from ninth place last year. It recorded its highest-ever profit of Rs. 39 billion, reflecting over 12 percent growth from the previous year. The bank’s pre-tax profit stood at Rs. 83.8 billion, and it paid over Rs. 43.9 billion in taxes to the government. The bank’s share value surged from Rs. 31.7 to Rs. 35.8. It declared a dividend of Rs. 17 per share in phases to shareholders in 2024. Bank Alfalah also reported its highest-ever profit of Rs. 38.3 billion, reflecting over 5 percent growth from the previous year. In 2023, the bank reported over 100 percent profit growth. The bank’s pre-tax profit stood at Rs. 83 billion, while its tax contribution was Rs. 44.7 billion. Its share value surged from Rs. 23.1 to Rs. 24.3. It paid out a dividend of Rs. 8.5 per share to shareholders in 2024. The National Bank of Pakistan (NBP) declined in its position from 5th to 9th in 2024. The bank recorded a significant decrease in profitability in the outgoing year, which dropped to Rs. 26.8 billion from Rs. 56.8 billion in 2024. The bank’s pre-tax profit stood at Rs. 56.6 billion and it paid Rs. 29.8 billion on account of taxes in 2024. The bank’s earnings per share also decreased to 12 from 24. It paid a cash dividend of Rs. 8 per share (Last paid in 2016). Habib Metro Bank maintained its position among the top 10 profitable banks. It reported a profit of Rs. 24.6 billion, showing flat profit growth compared to the previous year. The bank reported a pre-tax profit of Rs. 56.7 billion and paid various taxes totaling Rs. 27.9 billion in 2024. The share value of the bank stood at Rs. 23, and it paid a dividend of Rs. 12 per share to its shareholders. The passage of the 26th amendment, which states the elimination of Riba/interest-based banking and the financial system by 2028, will provide impetus for the conversion of conventional banking to Islamic banking. In this regard, the banking industry will also witness a transition from interest-based banking to Sharia-compliant practices. Islamic banks and conventional banks with a strong Islamic banking network will have an advantage over other banks in driving their income from Sharia-compliant avenues, particularly Sukuks.