Listed banks post Rs168 billion profit in 2Q2026, flat YoY but down 4% QoQ on higher expenses

According to Topline Securities, listed banks in Pakistan earned a combined Rs168 billion in 2Q2026, unchanged year-on-year but 4% lower than the previous quarter. First-half earnings reached Rs342 billion, also flat on a yearly basis. Higher non-interest expenses were the main drag on the quarterly figure.

Net interest income fell 2% to Rs527 billion, reflecting the delayed impact of the April 2026 rate increase, while non-interest expense rose 7% quarter-on-quarter to Rs361 billion. Non-interest income grew 4% from the previous quarter to Rs177 billion, helped by stronger foreign exchange earnings. The cost-to-income ratio widened to 51.3% from 48.0% in the previous quarter.

UBL led the sector with earnings of Rs37.5 billion, ahead of Meezan Bank at Rs26.2 billion and Habib Bank at Rs18.4 billion. JS Bank posted the steepest annual profit increase, at 704% from a low base, while Bank Makramah recorded a Rs3.9 billion loss. Most banks kept their quarterly payouts, with Meezan Bank raising its dividend to Rs8.0 per share and MCB announcing Rs9.0 per share.