Pakistan’s banking sector improved its funding structure in 2025 by increasing reliance on low-cost deposits, helping lenders protect profitability amid economic challenges, according to Arif Habib Limited.
Data shows that current account deposits, which earn no interest, rose to 41% of total deposits, up from 36% in 2024. The total value of current accounts increased by Rs. 4.7 trillion, reaching Rs. 16.3 trillion, reflecting strong deposit growth across the banking system.
Profitability and Efficiency Gains
Industry analysts say the higher share of low-cost deposits is expected to strengthen net interest margins (NIMs), a key measure of profitability, by reducing reliance on higher-cost funding.
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Among major banks, Standard Chartered Bank Pakistan leads with 59% of deposits in current accounts, followed by United Bank Limited at 51%, MCB Bank at 49%, and Meezan Bank at 48%.
The trend highlights growing efficiency in Pakistan’s banking sector, as lenders increasingly rely on cheaper deposit sources to maintain earnings stability even in uncertain economic conditions.
