Karachi: The National Bank of Pakistan (NBP) has maintained its robust entity ratings, reflecting a strong position in the domestic commercial banking sector, according to a recent evaluation by The Pakistan Credit Rating Agency Limited (PACRA). The ratings underscore NBP’s solid financial risk profile, substantial risk absorption capacity, and systemic importance, largely supported by its significant national deposit base and predominant ownership by the Government of Pakistan.
NBP’s ongoing digital transformation has been a key area of focus. The bank upgraded its Core Banking Application and enhanced cybersecurity across its expansive network. It has also expanded its digital offerings, introducing new ATMs, mobile applications for both conventional and Islamic banking, EMV/contactless debit cards, and a suite of other digital services. Notably, NBP became the first bank to activate the State Bank of Pakistan’s RAAST instant payment system.
Financially, NBP reported a 5% increase in total deposits, reaching PKR 3,865 billion by the end of 2024. A significant 94% of its funding comes from stable customer deposits. Current deposits were recorded at PKR 1,948 billion, comprising 50.4% of total deposits, and the bank maintained a high CASA ratio of 79.5%.
The bank’s advances rose slightly to PKR 1,405 billion, with growth across various sectors, including SME and commercial, agriculture, and consumer finance. However, non-performing loans increased by 21.9% to PKR 269 billion, primarily due to issues with a single large borrower. Despite this, NBP’s strong credit loss allowances provided an NPL coverage ratio of 83.9%.
NBP’s investments grew by nearly 5% to PKR 4,612 billion, and the equity base increased by 19% to PKR 457 billion, supported by a robust Capital Adequacy Ratio of 27.8%, the highest in the industry. These financial metrics reflect NBP’s effective yield, interest rate risk, and liquidity management strategies.
In 2025, the bank plans to continue its technological advancements by upgrading its core banking platform. These efforts reflect NBP’s commitment to operational resilience and prudent financial management as it seeks to maintain its leadership in Pakistan’s commercial banking sector.