PESHAWAR – The Bank of Khyber recorded a significant rise in its profitability during the first quarter of the financial year 2025, with its Profit After Tax (PAT) increasing by 108% year-on-year to Rs1.6bn.
The sharp increase was driven by higher interest margins, improved investment returns, and better risk management practices.
The bank’s Net Interest Income (NII) rose by 45% to Rs5.1bn, reflecting strong performance in managing its assets and liabilities. The optimisation of its cost of funds contributed to improved profitability. Meanwhile, Non-Funded Income (NFI) grew by 64% to Rs900mn, boosted by mark-to-market gains on investments, which totalled Rs521mn during the quarter.
Despite rising inflation and increased administrative expenses, which led to a 15% hike in operating costs, the Bank of Khyber managed to post solid results. A key factor in this performance was the reversal of Rs118mn in provisions, indicating a decline in non-performing loans and stronger credit risk controls.
The bank has expressed confidence in maintaining its momentum through continued focus on digital banking, diversification of its loan portfolio, and ensuring the quality of its assets. It also aims to strengthen its capital base to meet future challenges and support growth.
In recognition of employee performance and to support operational efficiency, the Bank of Khyber also announced internal grade promotions for staff in Junior Officer and Officer Grade-III roles. These promotions, effective from 1 January 2025, will not require interviews for eligible staff who meet set performance criteria.
This move is part of the bank’s broader strategy to retain talent, build staff morale, and improve service delivery across its branches. The decision aligns with the bank’s commitment to merit-based growth and better human resource planning.
The Bank of Khyber had earlier reported an annual profit of Rs3.6bn for FY24, reflecting consistent performance and prudent financial management.
