Banking stocks on PSX: how to compare Pakistan's listed banks (2026)

Banks are the biggest sector in the KSE-100 index by weight, so a big move in bank shares moves the whole market. They are also among the most generous dividend payers on the exchange. If you want to understand PSX, you need to understand how Pakistani banks make money.

Below is every commercial bank listed on PSX, largest first. The table updates itself.

Every bank stock on PSX

How Pakistani banks make money

A bank's main income is the gap between what it earns on loans and investments and what it pays depositors. That gap, as a share of its earning assets, is the net interest margin.

Pakistani banks put a large share of their deposits into government securities (treasury bills and Pakistan Investment Bonds) rather than private loans. So their profits follow the State Bank's policy rate more closely than banks in most countries. The policy rate peaked at 22% in 2023 and was cut sharply from mid-2024. High rates lifted bank profits to records; lower rates shrink margins on new investments but also reduce bad loans and help borrowers.

The numbers that matter for banks

Price-to-book (P/B)

Banks are usually valued on P/B rather than P/E. A bank's book value (its capital) is steadier than its profit, which swings with interest rates and provisions. A P/B below 1× means the market values the bank at less than its accounts say its capital is worth. That can be a bargain, or a sign investors expect losses on loans.

Return on equity (ROE)

How much profit the bank makes on its shareholders' capital. A bank earning a high ROE year after year deserves a higher P/B than one earning a low ROE. Compare the two together: a low P/B with a high ROE is what value investors look for.

Bad loans

The non-performing loan ratio is the share of loans that borrowers have stopped repaying. A rising ratio means more provisions and lower profit ahead. Banks publish it in their quarterly accounts.

Cheap deposits (CASA)

Current and savings accounts cost banks much less than fixed deposits. A bank with a high share of these CASA deposits has cheaper funding and fatter margins. It's one of the most durable advantages in Pakistani banking.

Islamic banks

MEBL (Meezan Bank) is Pakistan's largest Islamic bank and among the largest banks on PSX. BIPL (BankIslami) and FABL (Faysal Bank, which converted fully to Islamic banking) are also fully Islamic, and several conventional banks run large Islamic windows. The table marks Shariah-compliant shares, and Islamic banks are part of the KMI-30 index.

What moves bank shares

• Policy rate decisions. The State Bank's monetary policy meetings are the biggest scheduled events for bank shares.
• Tax. Banks pay a higher corporate tax rate than most companies, and the federal budget often changes it. In recent years the rate also depended on how much of its deposits a bank lent out (its advances-to-deposits ratio).
• Dividends. Banks pay out a large share of their profits, so dividend announcements with quarterly results move prices.
• Government borrowing. Banks hold a lot of government debt, so the country's finances and IMF programme reviews matter to them directly.

Related guides

• Best dividend stocks on PSX
• Best value stocks on PSX
• Every bank listing, by price and day change