The Bank of Khyber (BoK) has reported a significant decline in profitability for the nine months ended September 30, 2026, with consolidated profit after taxation falling to Rs2.39 billion from Rs4.97 billion in the corresponding period last year.

According to the bank’s financial results submitted to the Pakistan Stock Exchange (PSX), consolidated profit after taxation declined by approximately 52% year-on-year, while earnings per share (EPS) decreased to Rs2.07 from Rs4.29.

Net Interest Income Declines

The bank’s consolidated net mark-up and interest income stood at Rs12.81 billion during the nine-month period, compared with Rs14.52 billion in the same period of 2025. The decline reflects lower net interest earnings during the reporting period.

Total consolidated income decreased to Rs14.33 billion from Rs18.17 billion a year earlier, indicating pressure on the bank’s overall income generation.

Non-mark-up and interest income also declined substantially to Rs1.52 billion from Rs3.65 billion in the corresponding period last year. The decrease was mainly reflected in lower gains on securities and other income components.

Operating Expenses and Profitability

Consolidated non-mark-up and interest expenses increased to Rs9.67 billion during the nine months ended September 2026, compared with Rs8.53 billion in the corresponding period of the previous year.

As a result, profit before credit loss allowance fell to Rs4.66 billion from Rs9.65 billion a year earlier. The bank recorded a net reversal of credit loss allowance and write-offs of approximately Rs498.38 million, compared with a reversal of Rs958.69 million in the same period last year.

Profit before taxation declined to Rs5.16 billion from Rs10.60 billion, while taxation amounted to Rs2.76 billion during the reporting period.

Third-Quarter Performance

For the quarter ended September 30, 2026, the bank reported consolidated profit after taxation of Rs918.18 million, down from Rs1.61 billion in the same quarter of 2025.

Quarterly earnings per share decreased to Rs0.79 from Rs1.39. Consolidated net mark-up and interest income remained relatively stable at Rs4.43 billion, compared with Rs4.68 billion in the corresponding quarter last year.

However, total quarterly income declined to Rs4.98 billion from Rs5.91 billion, while operating expenses increased to Rs3.23 billion from Rs2.84 billion, contributing to the lower quarterly profit.

Balance Sheet and Deposits

The bank’s consolidated total assets increased to Rs584.12 billion as of September 30, 2026, compared with Rs453.30 billion at December 31, 2025.

Deposits and other accounts rose to Rs432.52 billion from Rs378.12 billion, while investments increased to Rs373.88 billion from Rs274.96 billion. Advances also increased to Rs150.70 billion from Rs126.71 billion.

Total liabilities stood at Rs561.31 billion, compared with Rs429.62 billion at the end of December 2025. Consolidated net assets amounted to Rs22.81 billion at the end of September 2026.

No Dividend Announced

The bank’s Board of Directors, in its meeting held on October 28, 2026, recommended no cash dividend, bonus shares, or right shares for the period under review. No other entitlement or price-sensitive information was announced in the notice submitted to the PSX.

The bank stated that its quarterly report for the period ended September 30, 2026, would be transmitted separately through the Pakistan Unified Corporate Actions and Reporting System (PUCARS).

Outlook

The Bank of Khyber’s nine-month results highlight the challenges facing its earnings performance, with lower total income and higher operating expenses contributing to the decline in profitability. At the same time, growth in deposits, investments, advances, and total assets points to an expansion in its balance sheet.

Investors will be watching the bank’s upcoming financial disclosures for further insight into income generation, expense management, and the sustainability of its business growth.