The National Bank Of Pakistan ("NBP" or the "Bank") was established under the provisions of the NBP Ordinance 1949 as a scheduled bank and is listed on the Pakistan Stock Exchange (PSX).

The National Bank of Pakistan was founded in 1949 following the independence of Pakistan to act as a key national financial institution. Over the years, it has remained committed to strengthening financial stability and supporting the economy through various challenges and changes. The Bank operates a broad network locally and internationally with a workforce exceeding 15,000 employees and strong global banking relationships. It continues to play an important role in the country’s economic progress by offering dependable financial services and contributing to development.

National Bank of Pakistan (NBP) is the country's premier commercial bank and a Domestic Systemically Important Bank. NBP offers retail, corporate, SME, agriculture, and Islamic banking services through 1,503 domestic and 14 international branches. NBP began Islamic banking in 2005 under the brand "NBP Aitmaad". At end-December 2025, there were 312 Islamic Banking Branches and 350 Islamic Banking Windows, offering Shariah-compliant products like Murabaha and Ijarah. The Bank has approved a plan to convert its entire conventional operations to Islamic banking, with full conversion expected to take effect by the end of 2027 in line with SBP regulatory directives (Page 17). As at Dec-25, Islamic Banking touchpoints reached 662 branches/windows, with total Islamic banking assets growing 87.4% YoY to PKR 625bn. NBP also supports agriculture finance (140,000+ farming families) and has enhanced customer convenience through its Digital App (2.3mln plus users) and a modernized Core Banking system.

The ownership structure of National Bank of Pakistan (NBP) is dominated by the Federal Government of Pakistan, which holds a controlling stake of 75.20% through the State Bank of Pakistan. The remaining 24.80% is held by a diverse group of shareholders, including Public Sector Companies (4.38%), the General Public – Local (8.19%), Other shareholders comprising mutual funds, insurance companies, and corporate entities (4.55%), Foreign Companies (2.58%), Banks, DFIs, and Financial Institutions (1.25%), Government Ministries (0.40%), the General Public – Foreign (0.08%), and NIT & ICP (0.04%).

The ownership structure of the Bank is seen as stable, as no ownership changes are expected in the future. The majority stake will rest with the Government of Pakistan.

NBP demonstrates strong business acumen by balancing commercial profitability with its national mandate. The bank has successfully executed a multi-year turnaround, resolving legacy pension liabilities and achieving record profit after tax of PKR 85.9bln in 2025.

NBP, being a flagship entity under the umbrella of the Federal Government of Pakistan, benefits from a high willingness of the government to support the Bank in case the need arises, given its status as a Domestic Systemically Important Bank (D-SIB) and its critical role as an agent to the State Bank of Pakistan for treasury operations. This implied government support is further supplemented by the Bank's strong access to domestic and international capital markets.

The Board comprises seven members including the President/CEO, thereby meeting the minimum regulatory requirement of at least five directors, with the CEO serving as the only executive member on the Board. The Board of the National Bank of Pakistan reflects diversified expertise across banking, public finance, corporate leadership, and multiple industrial sectors, with most directors carrying over two decades of professional experience. The composition brings together seasoned professionals from financial markets, civil services, and large corporate groups, thereby strengthening governance oversight, strategic direction, and risk management capability of the institution.

The Board carries diversified experience including the financial sector, particularly banking, civil services, and other businesses. The majority of the directors have above two decades of experience. The directors having requisite experience and education are exempt from, SECP’s Code of Corporate Governance. Mr. Naved Abid Khan has recently been appointed as Chairman of the Board of the National Bank of Pakistan (NBP). He is a seasoned banker with over 30 years of experience, including senior leadership roles such as President & CEO of Faysal Bank Limited and CEO of ABN AMRO Bank Pakistan. He has also held key positions in major industry bodies, including the Pakistan Banks’ Association (PBA) and the Overseas Investors Chambers of Commerce and Industry (OICCI), and has served on several corporate boards in Pakistan. Mr. Farid Malik, a CFA and LSE graduate, holds nearly 30 years of expertise in infrastructure, corporate finance, and capital markets. He has led organizations like LSE Financial Services and worked with SECP and Tomen Power. Currently, he serves on the boards of NBP and Fauji Akbar Portia Marine Terminals. Mr. Amjad Mahmood, Additional Finance Secretary, brings 32 years of experience in public finance, regulatory affairs, and governance, including advisory roles with ADB and key Pakistani financial institutions. He holds multiple master’s degrees and specializes in public financial management and administration. Mr. Muhammad Sohail Tabba is a seasoned business leader with over three decades of experience across textiles, cement, energy, real estate, and retail, currently holding key leadership positions in major Pakistani conglomerates, including Lucky Cement and Lucky Core Industries. Mr. Navaid Hasib Malik is an experienced corporate leader and entrepreneur with extensive international exposure across hospitality, aviation, real estate, and diversified industrial sectors, having held senior executive and board positions with leading global organisations, airlines, and multinational ventures, and currently serving on multiple corporate boards and committees in Pakistan and abroad. Ms. Aaiza Khan is a finance and risk management professional with over a decade of experience spanning corporate banking, credit policy, risk management, and economic policy advisory, alongside active involvement in entrepreneurship and board leadership roles across financial services, technology, and corporate sectors.

During CY25, "11" Board meetings (CY24: 13) were held; the attendance of directors remained high. Relatively, a large number of meetings reflect continuous monitoring of affairs of overseeing operations

The Audit Committee, the internal audit function, includes a review of the annual and interim financial statements of the Bank, before their approval by the Board, focusing on major judgmental areas, significant adjustments resulting from the audit, going concern assumption of any changes in accounting policies and practices, compliance with applicable accounting standards, compliance with regulations and other statutory and regulatory requirements. M/s  BDO Ebrahim & CO Chartered Accountant I M/s. A.F. Ferguson & Co, Chartered Accountants, classified in category 'A' by SBP and having a satisfactory QCR rating, are the external auditors for NBP. They expressed an unqualified opinion on the financial statement for the year ended 31st December 2025.

NBP has a lean organizational structure that clearly defines responsibilities, authority, and reporting lines with proper monitoring and compliance mechanism. NBP has divided its functions into 20 departments, each of which reports directly to the President, except the Audit & Inspection, which reports to the Board Audit Committe.

NBP’s senior management team comprises experienced bankers. Mr. Rehmat Ali Hasnie is the acting president and CEO of the Bank. He is serving in NBP since 2010 and has been the group chief of the Inclusive Development Group (IDG) since 2019. Mr. Abdul Wahid Sethi is the Chief Financial Officer of the Bank.He is a fellow member of the ICAP and holds an MBA Finance Degree from Imperial College Lahore. He has also served the Bank as SEVP/Chief Internal Auditor of the Bank. Prior to joining NBP in 2009, he worked at senior positions with various reputed Organizations. Mr. Haroon Zameer is Chief Risk officer, he has over three decades of experience of banking and finance in Pakistan, Singapore, Britain, and the Middle East. During his career he has worked in different leadership roles in corporate relationship management, leveraged finance, venture capital, banking operations, and risk management in American, European, Pakistani, and Japanese Organisations. Mr. Ausaf Ahmed has been appointed as Deputy Chief Technology Officer, bringing relevant academic background and professional experience in technology and digital solutions, with a growing track record in IT leadership, systems development, and technology-driven transformation initiatives. Mr. Muhammad Ismail currently serves as Group Cheif treasury and capital markets, Thirty years experienced treasury professional and in his current position, as the Group Chief Treasury & Capital Markets Group, he manages interest rate, foreign exchange and liquidity risks of the Bank. Ismail is an IBA graduate and joined NBP Treasury in 2004.

NBP has an effective mix of management committees that are established to monitor performance and assure adherence to the policies and procedures. The Committees are 01) Audit Committee, 02)HR & Remuneration Committee, 03) Inclusive Development Committee , 04) Risk & Compliance Committee ,05) Strategy Committee and 06) Technology & Digitalization Committee.

NBP has continued to strengthen its technology and information security infrastructure, with ongoing enhancements to its cybersecurity framework aimed at improving resilience against evolving digital threats. The Bank is also progressing with the upgrade and phased rollout of its core banking application during 2025, which is expected to further enhance system efficiency, scalability, and service delivery capabilities.

NBP’s risk management framework is overseen by the Risk Management Group (RMG), led by the Chief Risk Officer, Mr. Haroon Zameer. The RMG is responsible for developing and maintaining comprehensive risk management policies, frameworks, and analytical tools in line with SBP guidelines, while ensuring effective implementation across relevant business and control functions. The Group plays a central role in identifying, monitoring, and mitigating credit, market, operational, and liquidity risks, thereby supporting the Bank’s overall risk governance structure and financial stability.

During CY25, Pakistan’s banking sector’s total assets grew by approximately 17.8% YoY, while investments surged by ~31.1% to PKR ~39.1trln (CY24: PKR ~29.8trln). Net advances of the sector declined by ~6% to PKR ~14.9trln (CY24: PKR ~15.8trln). Non-Performing Loans (NPLs) decreased by 9.7% YoY to PKR ~964bln (CY24: PKR ~1,068bln). The Capital Adequacy Ratio (CAR) averaged 20.8% (CY24: 20.6%), slightly below historical averages due to higher risk-weighted assets and a shift toward low-yield government securities, yet capitalization remains adequate to absorb potential shocks. While the Advances to Deposit Ratio (ADR) was reported at 37.5% (CY24: 49.7%), which appears higher relative to declining advances, because deposit growth outpaced lending activity. This reflects a cautious lending stance by banks in a challenging macroeconomic environment, where risk-averse behavior and liquidity accumulation resulted in slower credit deployment, pushing the ADR downwards. In a lower policy rate environment, coupled with high operating costs and reduced lending, the sector faced margin pressure, leading to moderated profitability by end-CY25, despite robust capitalization and improving asset quality. (Source: SBP Compendium). Amid this sector-wide trend, NBP broadly aligned with the industry’s risk-averse positioning, with its investment portfolio expanding to PKR 4,922.1bln (CY24: PKR 4,612.0bln), reflecting continued preference for sovereign-backed assets. In contrast, net advances declined to PKR 1,338.1bln (CY24: PKR 1,404.0bln; ~4.7% decline), resulting in an ADR of 30.21%, consistent with the Bank’s conservative lending strategy and liquidity-driven balance sheet posture. In line with the declining interest rate environment, NBP’s top line witnessed some contraction due to asset yield repricing; however, this was more than offset by a significant reduction in interest expense, supported by the Bank’s strong low-cost deposit base. As a result, profitability improved meaningfully, with PAT registering a strong increase, driven by sustained cost discipline and improved funding efficiency despite sector-wide margin pressures.

NBP’s total deposit base increased to PKR 4,429bln in CY25 (CY24: PKR 3,865bln), reflecting a healthy growth trend during the period. Within this, customer deposits rose to PKR 2,188bln (CY24: PKR 1,801bln), indicating an expansion in core deposit mobilisation. The customer deposits constituted a reduced share of total deposits in CY25, while the Bank’s customer deposit market share in the industry declined to 11.08% (CY24: 12.27%), reflecting a slight moderation in relative positioning despite absolute growth in deposits.

Mark-up earned contracted to PKR 781.1bln in CY25 (CY24: PKR 1,089.4bln), primarily due to policy rate reductions impacting yields on the investment book. Investment income declined as PIB and T-bill yields moderated following successive SBP rate cuts. Advances income registered PKR 183.1bln (CY24: PKR 233.3bln). Advances yield declined to 12.8% (CY24: 15.7%), and average investments yield declined to 6.3% (CY24: 9.5%).

Net mark-up income improved significantly to PKR 248.5bln in CY25 (CY24: PKR 170.9bln), as deposit costs declined sharply following the rate cycle reversal. Deposits cost fell to 6.8% (CY24: 12.2%) while borrowings cost moderated to 13.8% (CY24: 22.2%). Non-mark-up income stood at PKR 63.2bln (CY24: PKR 65.4bln), with fee and commission income at PKR 27.9bln and foreign exchange income recovering to PKR 15.6bln. Non-mark-up expenses declined to PKR 124.8bln in CY25 from PKR 177.4bln in CY24, primarily due to normalization of compensation expenses after the one-off anomaly recorded in CY24. Compensation expenses reduced significantly to PKR 72.8bln in CY25 compared to PKR 136.4bln in CY24, supporting the overall decline in operating expenses. Provisions net charge was PKR 8.0bln (CY24: PKR 2.3bln). Pre-tax profit recovered to PKR 178.9bln (CY24: PKR 56.7bln) and PAT to PKR 85.9bln (CY24: PKR 26.8bln).

CASA ratio stood at approximately 80.7% (Dec-25), comprising 48.8% current deposits and 31.9% savings deposits. The strong CASA franchise provides a structural cost advantage and funding stability for NBP. However, the shift from current to saving deposits (saving deposits: 31.9% vs. 29.1% in CY24) signals an increase in interest-sensitive liabilities. Loan growth remained subdued, with gross advances declining by approximately 3.5% in CY25, consistent with sector-wide caution.

NPLs (Stage III) declined to PKR 222.9bln in CY25 (CY24: PKR 269.2bln), a reduction of 17.2% YoY, driven by write-offs and improved recoveries. The impaired loan ratio improved to 13.8% (CY24: 16.1%), though it remains elevated relative to the sector average of approximately 6.5%. Provision coverage strengthened materially to 106.4% (CY24: 83.9%), providing adequate buffer against residual NPL risk. Stage I and Stage II net advances stood at PKR 1,334.9bln (CY24: PKR 1,361.4bln). ADR remained conservative at 30.21%, consistent with the sector's cautious lending posture. Government securities constituted 95.5% of the investment portfolio, minimizing credit risk within the investment book.

Government securities exposure reached PKR 4,701.1bln in CY25 (CY24: PKR 4,369.9bln), comprising predominantly fixed-rate PIBs and T-bills. The significant duration exposure of the fixed-rate portfolio creates mark-to-market sensitivity to interest rate movements; however, the declining rate environment in CY25 generated fair value gains on the FVOCI portfolio. FVOCI unrealized gain on government securities stood at PKR 71.9bln (CY24: PKR 50.0bln). Equity instruments plus subsidiaries/associates relative to equity stood at 34.2% (CY24: 12.0%), reflecting the increase in subsidiaries/associates' valuation to PKR 103.0bln. Market risk-weighted assets to investments ratio was 9.1% (CY24: 3.2%).

Liquid assets to deposits and borrowings (net of repo) stood at 81.5% (CY24: 77.6%), reflecting a highly liquid balance sheet. The Liquidity Coverage Ratio stood at 215% (CY24: 206%), well above the regulatory minimum. NSFR was 176% (CY24: 174%), indicating robust structural funding. Deposits grew by 14.6% to PKR 4,429bln, driven predominantly by government and public sector entity deposits (PKR 2,158bln; 48.7% of total). The shift in deposit mix toward saving deposits — up from 29.1% to 31.9% — signals incremental interest-rate sensitivity in the funding base. Borrowings from financial institutions remained elevated at PKR 1,655.4bln.

Capital Adequacy Ratio stood at 26.2% in Dec-25 (CY24: 27.8%), well above the SBP minimum requirement and the sector average of 20.8%. Tier I CAR was 19.6% (CY24: 20.5%) and Tier II was 6.6% (CY24: 7.3%). Equity grew to PKR 531.4bln at Dec-25 (CY24: PKR 456.9bln), driven by retained earnings of PKR 301.6bln and positive OCI on investments. The easing interest rate environment during CY25 resulted in revaluation gains; however, the subsequent 100bps increase in the policy rate during 1QCY26 led to revaluation losses. The impact on capitalization remained manageable, comfortably absorbed within the Bank’s well-established capital buffers and supported by consistent internal capital generation. Shareholders’ equity, excluding revaluation surplus, increased by 19.8% to PKR 405.9bln (CY24: PKR 338.7bln), while total equity stood at PKR 531.4bln.