The banking sector in Pakistan witnessed significant developments in 2024, with many banks reporting impressive profits despite economic challenges. Policy rate fluctuations and higher deposit rates shaped the industry’s performance, while the government’s issuance of Sukuks further bolstered profitability. This article highlights the top 10 most profitable banks in Pakistan for 2024, showcasing their financial achievements and contributions to the economy.
Meezan Bank: Leading the Pack
Meezan Bank, Pakistan’s largest Islamic bank, topped the list with a record-breaking profit of over Rs. 100 billion in 2024. This marked a 20% annual growth, up from Rs. 84.5 billion in 2023. The bank’s pre-tax profit reached Rs. 222 billion, contributing Rs. 121 billion in taxes. With earnings per share rising to Rs. 57 and a dividend payout of Rs. 28, Meezan Bank solidified its position as a leader in the banking sector.
United Bank Limited: A Strong Comeback
United Bank Limited (UBL) reclaimed its position as the second most profitable bank, reporting a 34% increase in profits to Rs. 75.7 billion. Its pre-tax profit stood at Rs. 150 billion, with Rs. 74.3 billion paid in taxes. UBL’s earnings per share rose to Rs. 61, and it distributed Rs. 44 in dividends. The bank also accelerated its transition to Islamic banking, completing the shift in KPK and Balochistan.
MCB Bank: A Slight Dip
MCB Bank slipped to third place, reporting a profit of Rs. 57.6 billion, down by over Rs. 2 billion from the previous year. Its pre-tax profit was Rs. 118.4 billion, with tax contributions exceeding Rs. 60 billion. Earnings per share dropped to Rs. 48, and the bank announced a dividend of Rs. 36. Despite the decline, MCB Bank remained a key player in the industry.
Habib Bank Limited: Steady Performance
Habib Bank Limited (HBL) maintained a steady performance, reporting flat profit growth at Rs. 57.8 billion. Its balance sheet expanded to Rs. 6.1 trillion, with deposits reaching Rs. 4.4 trillion. HBL’s pre-tax profit stood at Rs. 120 billion, and it paid Rs. 62.5 billion in taxes. The bank declared a dividend of Rs. 16.5 per share, reflecting its resilience in a challenging environment.
Standard Chartered Bank: Record Profits
Standard Chartered Bank achieved its highest-ever profit of Rs. 46 billion, marking a 7.9% annual growth. The bank’s pre-tax profit reached Rs. 100 billion, with Rs. 54 billion paid in taxes. Earnings per share stood at Rs. 11.90, and shareholders received a dividend of Rs. 9. The bank is also transitioning to Islamic banking, aiming to align with evolving industry trends.
Allied Bank Limited: Historic Highs
Allied Bank Limited (ABL) climbed to sixth place, reporting its highest-ever profit of Rs. 43 billion. Its pre-tax profit was Rs. 87 billion, with Rs. 44.8 billion paid in taxes. ABL’s share value stood at Rs. 37.5, and it distributed Rs. 16 per share as dividends. The bank’s consistent growth highlights its strong operational strategies.
Bank Al Habib: Significant Growth
Bank Al Habib jumped to seventh place, recording a 12% profit growth to Rs. 39 billion. Its pre-tax profit reached Rs. 83.8 billion, with Rs. 43.9 billion paid in taxes. The bank’s share value rose to Rs. 35.8, and it declared a dividend of Rs. 17 per share. This performance underscores its focus on sustainable growth.
Bank Alfalah: Steady Progress
Bank Alfalah reported its highest-ever profit of Rs. 38.3 billion, reflecting a 5% annual growth. Its pre-tax profit stood at Rs. 83 billion, with Rs. 44.7 billion paid in taxes. The bank’s share value increased to Rs. 24.3, and it distributed Rs. 8.5 per share as dividends. Bank Alfalah continues to strengthen its market position.
National Bank of Pakistan: A Challenging Year
The National Bank of Pakistan (NBP) faced a challenging year, with profits dropping to Rs. 26.8 billion from Rs. 56.8 billion in 2023. Its pre-tax profit was Rs. 56.6 billion, and it paid Rs. 29.8 billion in taxes. Earnings per share fell to 12, and the bank declared a dividend of Rs. 8 per share, marking its first cash payout since 2016.
Habib Metro Bank: Maintaining Stability
Habib Metro Bank maintained its position among the top 10, reporting a profit of Rs. 24.6 billion. Its pre-tax profit stood at Rs. 56.7 billion, with Rs. 27.9 billion paid in taxes. The bank’s share value was Rs. 23, and it distributed Rs. 12 per share as dividends. Despite flat growth, the bank demonstrated resilience.
Key Details of Pakistan’s Top 10 Most Profitable Banks in 2024
| Bank Name | 2024 Profit (Rs. Billion) | Pre-Tax Profit (Rs. Billion) | Tax Contribution (Rs. Billion) | Earnings Per Share (EPS) | Dividend Payout (Rs.) | Rank Change |
|---|---|---|---|---|---|---|
| Meezan Bank | 101.5 | 222 | 121 | 57 | 28 | Maintained 1st |
| United Bank Limited | 75.7 | 150 | 74.3 | 61 | 44 | Improved (4th to 2nd) |
| MCB Bank | 57.6 | 118.4 | 60 | 48 | 36 | Declined (2nd to 3rd) |
| Habib Bank Limited | 57.8 | 120 | 62.5 | 38 | 16.5 | Declined (3rd to 4th) |
| Standard Chartered | 46 | 100 | 54 | 11.90 | 9 | Improved (6th to 5th) |
| Allied Bank Limited | 43 | 87 | 44.8 | 37.5 | 16 | Improved (7th to 6th) |
| Bank Al Habib | 39 | 83.8 | 43.9 | 35.8 | 17 | Improved (9th to 7th) |
| Bank Alfalah | 38.3 | 83 | 44.7 | 24.3 | 8.5 | Maintained 8th |
| National Bank of Pakistan | 26.8 | 56.6 | 29.8 | 12 | 8 | Declined (5th to 9th) |
| Habib Metro Bank | 24.6 | 56.7 | 27.9 | 23 | 12 | Maintained 10th |
Key Highlights:
- Meezan Bank led the pack with a record-breaking profit of Rs. 101.5 billion, the highest in Pakistan’s banking history.
- United Bank Limited made a strong comeback, jumping to 2nd place with a 34% profit growth.
- MCB Bank and Habib Bank Limited saw slight declines in profitability but remained among the top performers.
- Standard Chartered Bank and Allied Bank Limited improved their rankings, reporting historic highs in profits.
- National Bank of Pakistan faced a challenging year, with profits dropping significantly, resulting in a decline from 5th to 9th place.
Future Outlook: Transition to Islamic Banking
The banking sector is set for a significant transformation with the passage of the 26th amendment, which mandates the elimination of interest-based banking by 2028. This shift will drive the conversion of conventional banks to Islamic banking, with Sukuks playing a pivotal role. Banks with strong Islamic banking networks, like Meezan Bank, are well-positioned to lead this transition and capitalize on Sharia-compliant financial products.
Conclusion
Pakistan’s banking sector showcased remarkable resilience and growth in 2024, with the top 10 banks collectively contributing over Rs. 600 billion in profits and Rs. 650 billion in taxes. As the industry evolves, the focus on Islamic banking and ethical financial practices will shape its future trajectory.