Bank of Khyber (BoK) reported a profit after tax of Rs1.013 billion for the quarter ended March 31, 2026, compared to Rs1.603 billion in the corresponding period last year, reflecting a decline of nearly 37%. Profit before tax stood at Rs2.109 billion versus Rs3.403 billion a year earlier, primarily due to lower net interest income and reduced gains on securities.
According to the bank’s condensed interim financial statements, operating profit for the first quarter reached Rs1.751 billion, while earnings per share (EPS) came in at Rs0.87 compared with Rs1.38 in the same period of 2025. Despite the decline in profitability, the bank maintained disciplined cost management, with operating expenses increasing by only 8% year-on-year.
BoK’s balance sheet continued to expand during the quarter. Total assets rose to Rs489.2 billion as of March 31, 2026, from Rs453.2 billion at the end of December 2025. Net investments increased significantly to Rs312.2 billion from Rs275.0 billion, while net advances climbed to Rs129.4 billion from Rs126.7 billion. Deposits stood at Rs363.5 billion, compared with Rs378.1 billion at year-end, while borrowings increased to Rs89.5 billion from Rs35.7 billion.
The bank also reported improvements in asset quality. Non-performing loans (NPLs) declined to Rs12.15 billion from Rs12.53 billion at the end of 2025. As a result of recovery efforts and prudent lending practices, BoK recorded a net reversal of expected credit loss allowance amounting to Rs357 million during the quarter, compared with a reversal of Rs118 million in the same period last year.
A key development during the quarter was the incorporation of BOK Currency Exchange Company (Private) Limited, a wholly owned subsidiary of the bank. BoK injected Rs1 billion as paid-up capital into the new venture and received in-principle approval from the State Bank of Pakistan for its operationalization. The initiative is expected to diversify revenue streams, enhance operational synergies, and expand the bank’s business footprint in the foreign exchange sector.
The bank continued to advance its Islamic banking conversion strategy, operating 254 branches nationwide, including 199 dedicated Islamic banking branches. Islamic banking deposits reached Rs207.2 billion by the end of March 2026, increasing their share in the bank’s overall deposit base.
Looking ahead, Bank of Khyber said it remains focused on sustaining growth, maintaining asset quality, strengthening capital discipline, and expanding financing across various economic sectors. The bank also plans to leverage technology and enhance service quality while targeting high-quality private-sector borrowers to diversify its financing portfolio.
