The banking sector in Pakistan experienced a dynamic year in 2024, with policy rate fluctuations and regulatory changes shaping the industry’s performance. Despite these challenges, leading banks recorded remarkable profits, driven by strategic investments and innovative banking practices. While some banks climbed the profitability ladder, others faced a slowdown due to increasing tax liabilities and economic pressures.
Here’s a look at the top 10 most profitable banks in Pakistan for 2024:
1. Meezan Bank
Meezan Bank made history by becoming the first bank in Pakistan to surpass Rs. 100 billion in annual profit. The bank’s strong performance was fueled by its extensive Islamic banking operations and Sukuk investments. Its pre-tax profit exceeded Rs. 220 billion, making it a key contributor to the national treasury.
2. United Bank Limited (UBL)
UBL moved up to the second position in 2024, reporting a profit of Rs. 75.7 billion. The bank’s profitability surged due to higher earnings from both domestic and international operations. UBL’s rapid transition to Islamic banking in certain regions also played a role in strengthening its financial position.
3. MCB Bank
MCB Bank recorded Rs. 57.6 billion in profit, securing the third spot. However, it faced a slight decline in earnings compared to the previous year. The bank focused on risk management and expanding its digital banking services to sustain its market presence.
4. Habib Bank Limited (HBL)
HBL’s profit remained steady at Rs. 57.8 billion in 2024, placing it in fourth position. The bank’s total assets reached Rs. 6.1 trillion, with a strong deposit base contributing to its financial stability. However, increased taxation affected its overall profit growth.
5. Standard Chartered Bank
Standard Chartered Pakistan posted its highest-ever profit of Rs. 46 billion, climbing to the fifth spot. The bank’s success was attributed to its emphasis on corporate and digital banking solutions. Plans for a gradual shift to Islamic banking are also underway.
6. Allied Bank Limited (ABL)
ABL achieved its best financial performance in history, recording Rs. 43 billion in profit. The bank’s focus on innovation, along with strong asset management, helped it improve its ranking among Pakistan’s most profitable banks.
7. Bank Al Habib
Bank Al Habib continued its upward trend, reporting a profit of Rs. 39 billion. The bank benefited from its well-diversified portfolio and strong customer trust, allowing it to expand its presence in the financial sector.
8. Bank Alfalah
Bank Alfalah’s profit stood at Rs. 38.3 billion in 2024. Despite facing economic uncertainties, the bank maintained stability by investing in technology-driven banking solutions and enhancing its customer services.
9. National Bank of Pakistan (NBP)
NBP saw a significant drop in profitability, falling to ninth place with Rs. 26.8 billion in profit. The bank faced challenges in managing its assets effectively, which led to a decline in earnings compared to the previous year.
10. Habib Metro Bank
Habib Metro Bank secured the tenth position with Rs. 24.6 billion in profit. The bank maintained its position through consistent performance, despite limited growth in earnings.
With Pakistan’s financial landscape evolving, the shift toward Islamic banking is expected to accelerate following the government’s commitment to eliminating interest-based banking by 2028. Banks with strong Islamic banking portfolios will likely gain a competitive edge, while others will need to adapt to remain profitable.
The banking sector’s resilience in 2024 demonstrated its ability to navigate economic challenges while maintaining steady growth. As regulatory frameworks and market dynamics continue to change, banks will need to focus on innovation and strategic investments to sustain their profitability in the years ahead.
