SBP Reports 20pc Decline in FY26 Profit as Earnings Fall Sharply

KARACHI: State Bank of Pakistan records a 20pc plunge in profits FY26, citing reduced earnings from prior years. According to information revealed by the central bank on Thursday, profit plunged 20 percent during the previous fiscal year 2025-26, compared to last year’s performance, based on financial statements for the year ended 30th June 2026, which was made available for public viewing on its website alongside the auditors’ report.

The Numbers Behind 20pc Decline in FY26 Profit

As per financial reports released by the State Bank, the bank earned a net income of Rs1.99 trillion in FY26, which represents a decrease from Rs2.499 trillion recorded in FY25. In other words, there was a decline of Rs506 billion or 20 percent year-over-year. This result is milder than the estimated fall of 40 percent, which some analysts were expecting due to the performance predictions going around in financial circles prior to FY26.

After making provision for any necessary appropriations within the parameters set by accounting standards, the surplus profit of Rs1.932 trillion earned by the State Bank of Pakistan has now been transferred to the Federal Government, indicating that there was an enormous flow of central bank profits to the government despite a fall in year-on-year profitability.

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The transfer is the highest transfer made by the central bank since it started operations. The last transfer was recorded in March 2024 when Rs1.388 trillion had

These financial statements not consolidated have been prepared in compliance with the accounting standards under the International Financial Reporting Standards (IFRSs) as developed by the International Accounting Standards Board (IASB). Moreover, these financial statements along with their respective auditor's reports have also been provided to the Federal Government and Majlis-e-Shoora (Parliament) under Section 40(3) of the State Bank of Pakistan Act, 1956.

Earnings on discounts, interests, mark-ups, and profits of financial investments declined to Rs2.037 trillion in FY26, compared to Rs2.801 trillion in FY25, marking the main reason for the SBP’s reduced earnings during the year. Additionally, printing charges of notes and prize bonds witnessed an increase from Rs24.667 billion in FY25 to Rs29.1 billion in FY26, becoming another important source of expense pressure for the bank. The charges are paid to the Pakistan Security Printing Corporation (Private) Limited, which is a wholly-owned subsidiary of the State Bank of Pakistan.

The State Bank of Pakistan, which serves as the central bank of Pakistan, is incorporated under the State Bank of Pakistan Act of 1956, lastly amended on January 28, 2022. According to the Act, the mandate of the Bank shall be to ensure and maintain price stability within Pakistan and promote financial stability of the country along with contributing towards the overall economic policy objectives set out by the government for developing and making optimal use of its productive potential. While announcing the 20pc decline FY26 profits, the disclosure is indicative of adherence to regulatory obligations on the part of SBP.