SBP profit falls 20% to Rs1.99 trillion in FY26 despite expansion in balance sheet

The State Bank of Pakistan (SBP) posted a net profit of Rs1,992 billion during the financial year 2025-26, marking a decline of around 20 percent compared with the Rs2,499 billion recorded in the preceding fiscal year.

ISLAMABAD: The State Bank of Pakistan (SBP) posted a net profit of Rs1,992 billion during the financial year 2025-26, marking a decline of around 20 percent compared with the Rs2,499 billion recorded in the preceding fiscal year.

According to the central bank’s latest financial statements, the reduction in annual earnings was primarily attributed to a significant drop in interest income. The SBP’s interest-related earnings fell to Rs1,905 billion in FY26 from Rs2,581 billion in FY25, representing a substantial year-on-year decrease.

The decline in interest income remained the major factor weighing on the central bank’s overall profitability during the year. However, the impact was partly offset by stronger earnings from several other sources.

The SBP generated more than Rs153 billion through commissions, exchange gains, dividends and other operating income during FY26. This represented a notable improvement compared with FY25, when these income streams collectively resulted in a loss of around Rs24 billion.

Meanwhile, the central bank’s administrative and other operating expenses increased during the year. Such expenses reached Rs46 billion in FY26, compared with Rs38 billion recorded a year earlier, reflecting an increase of Rs8 billion.

Despite the decline in annual profit, the SBP’s overall financial position showed continued expansion, with both its assets and liabilities increasing during the fiscal year.

The central bank’s total assets rose to Rs28,732 billion by the end of FY26, up from Rs26,381 billion in FY25. This represents an increase of Rs2,351 billion over the course of the year.

At the same time, total liabilities increased to Rs22,696 billion from Rs20,434 billion a year earlier, reflecting growth of Rs2,262 billion.

The SBP has published its financial statements along with the auditors’ report for the year ended June 30, 2026, on its official website. The documents were also submitted to the Federal Government and Parliament in accordance with Section 40(3) of the State Bank of Pakistan Act, 1956.

After making statutory appropriations and other required adjustments, the central bank’s distributable surplus stood at Rs1,932 billion.

The amount was subsequently transferred to the Federal Government, providing a substantial contribution to the government’s revenues during the fiscal year.

The latest financial results highlight a mixed picture for the central bank. While SBP profitability declined mainly because of weaker interest income, the institution continued to maintain a sizeable balance sheet and generated significant earnings from commissions, exchange-related gains, dividends and other operating activities.