Karachi: Pakistani banks are anticipated to report a decline in core income for the second quarter of calendar year 2026, with both year-on-year and quarter-on-quarter decreases expected. This downturn is primarily attributed to the contraction in net interest margins (NIMs), although non-interest income may provide some partial relief. Dividend policies for the period are projected to remain unchanged.

According to JS Global, within the coverage universe, a varied performance is expected among major banks. The earnings per share (EPS) predictions for the second quarter of 2026 include Rs9.65 for Habib Bank Limited (HBL), marking a 20% year-over-year decline, and Rs3.96 for Habib Metropolitan Bank (HMB), reflecting a 25% decrease. Conversely, Faysal Bank Limited (FABL) is projected to see a 14% rise in EPS to Rs3.64. Other banks such as Bank AL Habib Limited (BAHL) and Bank Alfalah Limited (BAFL) are expected to experience declines of 24% and 71%, respectively. Allied Bank Limited (ABL) is anticipated to see a slight increase of 2% in EPS to Rs8.28, while MCB Bank Limited (MCB) and Meezan Bank Limited (MEBL) are projected to have minor declines of 5% and 4%, respectively, in their EPS figures. Additionally, Askari Bank Limited (AKBL) is expected to report a significant 42% drop in EPS to Rs4.67.