Press Release
VIS Reaffirms Entity Ratings of National Bank Limited
Karachi, June 30, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of National Bank Limited (‘NBP’ or the ‘Bank’) at ‘AAA/A1+’ (Triple A/A-One Plus). Medium to long term rating of ‘AAA' indicates highest credit quality; the risk factors are negligible, being only slightly more than for risk-free Government of Pakistan’s debt. Short-term rating of ‘A1+’ denotes strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings is ‘Stable.’ The previous rating action was announced on June 30, 2025.
NBP was incorporated in Pakistan under the National Bank of Pakistan Ordinance, 1949 and is listed on the Pakistan Stock Exchange (PSX). The registered head office of the Bank is situated at I.I. Chundrigar Road, Karachi. The Bank is engaged in providing commercial and Islamic banking and related services in Pakistan and overseas. The Bank also handles treasury transactions for the Government of Pakistan (GoP) as an agent to the State Bank of Pakistan (SBP). The Bank operates 1,503 branches in Pakistan, including 312 Islamic Banking branches and 14 overseas branches (including the Export Processing Zone branch, Karachi). The Bank also provides services in respect of Endowment Fund for students’ loan scheme and IPS accounts.
NBP’s ratings reflect its status as one of the largest public sector commercial banks in the country, a systemically important financial institution with a market share of approximately 11.0% in terms of domestic deposits, and with a strategic role in handling government transactions and supporting public sector mandates. The ratings continue to draw strength from the Bank’s strong franchise value reflected in ready access to funds, sustained earnings generation, sound asset quality, and sovereign ownership structure. Operationally, NBP continued to advance its digital transformation strategy during CY25, with further investments in core banking modernization, cybersecurity infrastructure, and digital customer onboarding platforms, improving operational efficiency and customer experience. Governance structures, including board oversight and Shariah compliance for Islamic banking operations, remained strong. The Bank has also further strengthened integration of environmental, social, and governance (ESG) considerations into its business model.
Asset quality metrics exhibited improvement during CY25, driven by sustained recoveries and resolution of legacy non-performing exposures. Gross infection ratio declined to 13.8% (CY24: 16.1%), reflecting improved credit discipline and recoveries from stressed segments. Provisioning coverage strengthened further to 98.6%, providing a robust buffer against potential credit losses. Overall, asset quality trends indicate gradual strengthening of the Bank’s risk profile, although management continues to focus on reducing legacy stress assets.
NBP’s liquidity position remained sound, underpinned by a strong and stable deposit base. Deposits increased to PKR 4.43 trillion during CY25, supporting liquidity buffers. The CASA ratio improved to 80.7%, reflecting a favorable low-cost deposit mix. Liquidity coverage and funding ratios remained well above minimum requirements, offering resilience against short-term volatility. The Bank’s profitability improved during CY25, supported by higher core banking income and the absence of one-off pension-related expenses that affected prior year earnings performance. Earnings were further supported by stable net interest margins and improved non-markup income contribution, while cost discipline remained a key focus area.
NBP’s capitalization profile remained strong, although the Capital Adequacy Ratio moderated slightly due to faster growth in risk-weighted asset relative to capital accumulation during CY25. Nevertheless, capital levels remained comfortably above regulatory thresholds, supported by retained earnings and stable internal capital generation. The Bank continues to benefit from sovereign ownership, which provides an additional layer of capital strength and financial stability.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Financial Institutions
https://docs.vis.com.pk/Methodologies-2026/FI-Methodology-26.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf