Banks are the heaviest sector in the KSE-100, making up 31.1% of the index on 30 October 2026 by our count, and a favourite of dividend investors. If you are searching for the best bank stocks Pakistan has to offer, the right answer depends on whether you care most about value, profitability or income. This page compares the 14 banks in the KSE-100 on price to book, return on equity, dividend yield, fair value estimate and latest profit, using prices at the close on 30 October 2026.
How to compare bank stocks
Banks are judged differently from other companies. Their raw material is money, so measures such as debt to equity or inventory days mean little. Four numbers matter most:
- Price to book (P/B): the share price divided by book value (shareholders’ equity) per share. Below 1x means the market values the bank at less than its net assets. Our P/B ratio explainer explains it.
- Return on equity (ROE): profit as a percentage of shareholders’ equity, the best single measure of how well a bank uses its capital. See our ROE explainer.
- Dividend yield: cash dividends paid over the last 12 months as a percentage of the price.
- Fair value: our estimate of what one share is worth. For banks it comes from a justified P/B, the price to book a bank can support given its ROE, expected growth and the return investors require. The margin of safety shows how far the price is below that estimate; a negative figure means the price is above it.
We also show each bank’s Pulse Score in the text where it helps. It is our overall measure of financial quality out of 95, built from growth, stability, valuation, efficiency and cash flow, and like the fair value it is an estimate, not a verdict.
Best bank stocks Pakistan: KSE-100 banks compared
Banks are listed by market value, largest first. P/B, ROE and P/E use the latest reported results; the latest profit column shows profit after tax for the most recent period in our results file, against the same period a year earlier.
| Bank | Close (Rs) | P/B | ROE | P/E | Dividend yield | Fair value (Rs) | Margin of safety | Latest profit (change vs a year earlier) |
|---|---|---|---|---|---|---|---|---|
| UBL | 409.68 | 1.94x | 27.7% | 7.0x | 7.79% | 438.43 | +6.6% | Rs 30.22 bn (-12.9%), quarter to 30 September 2026 |
| MEBL | 528.61 | 3.12x | 31.2% | 10.1x | 5.81% | 471.31 | -12.2% | Rs 25.65 bn (+21.8%), quarter to 30 September 2026 |
| MCB | 397.52 | 1.41x | 17.4% | 8.1x | 9.38% | 358.17 | -11.0% | Rs 14.94 bn (+8.3%), quarter to 30 September 2026 |
| HBL | 291.55 | 0.85x | 13.8% | 6.2x | 8.43% | 297.86 | +2.1% | Rs 18.14 bn (+13.6%), quarter to 30 September 2026 |
| NBP | 159.72 | 0.72x | 14.3% | 5.0x | 22.61% | 205.95 | +22.4% | Rs 16.48 bn (-28.8%), quarter to 30 September 2026 |
| SCBPL | 59.57 | 2.08x | 21.6% | 9.6x | 10.00% | 49.76 | -19.7% | n/a |
| ABL | 170.89 | 0.75x | 12.7% | 6.0x | 9.46% | 167.63 | -1.9% | Rs 7.45 bn (-19.6%), quarter to 30 September 2026 |
| BAFL | 57.77 | 0.92x | 18.6% | 5.1x | 13.29% | 83.85 | +31.1% | Rs 9.29 bn (+50.7%), quarter to 30 September 2026 |
| BAHL | 150.89 | 0.90x | 16.1% | 5.6x | 10.01% | 187.55 | +19.5% | Rs 8.45 bn (+66.3%), quarter to 30 September 2026 |
| AKBL | 107.99 | 1.00x | 16.1% | 6.2x | 7.27% | 121.29 | +11.0% | n/a |
| FABL | 91.40 | 1.16x | 19.0% | 6.1x | 7.17% | 113.04 | +19.1% | Rs 5.16 bn (+3.3%), quarter to 30 September 2026 |
| HMB | 96.68 | 0.77x | 14.5% | 5.3x | 12.49% | 118.97 | +18.7% | Rs 4.42 bn (-20.8%), quarter to 30 September 2026 |
| BOP | 28.35 | 0.78x | 15.4% | 5.1x | 11.27% | 37.70 | +24.8% | n/a |
| BML | 58.33 | 2.58x | 15.2% | 17.5x | none | 22.05 | -164.5% | loss of Rs 3.95 bn (profit of Rs 1.57 bn a year earlier), half year to 30 June 2026 |
The median KSE-100 bank traded at 1.00x book with an ROE of 16.1%. 7 of the 14 banks traded below book value, and 5 were priced above our fair value estimate. In the latest reported period, 6 banks grew profit against a year earlier and 5 reported lower profit; “n/a” means the latest result is not yet in our results file.
What the numbers say
Profitability: who earns the most on its capital
Meezan Bank (MEBL) leads on ROE at 31.2%, followed by United Bank (UBL) at 27.7% and Standard Chartered Bank (Pakistan) (SCBPL) at 21.6%. The market rewards high returns with a higher price to book: Meezan Bank trades at 3.12x book and United Bank at 1.94x. The chart above shows the pattern, with most banks clustered at low P/B and mid-teens ROE.
Value: the cheapest on book and on our fair value
The lowest P/B ratios belong to National Bank of Pakistan (NBP, 0.72x), Allied Bank (ABL, 0.75x) and Habib Metropolitan Bank (HMB, 0.77x). The largest margins of safety against our fair value are Bank Alfalah (BAFL, 31.1%), Bank of Punjab (BOP, 24.8%) and National Bank of Pakistan (NBP, 22.4%). A low P/B is not automatically a bargain: it can reflect a lower ROE, weaker asset quality or a less certain dividend.
Income: dividend yield and payout record
The highest trailing yields are National Bank of Pakistan (NBP, 22.61%), Bank Alfalah (BAFL, 13.29%) and Habib Metropolitan Bank (HMB, 12.49%). Consistency matters as much as size: 8 of the 14 banks paid a cash dividend in each of the last 10 years. National Bank of Pakistan paid in only 4 of those 10 years, so its high trailing yield rests on a short record. Bank Makramah (BML) has paid no cash dividend in the last 10 years and reported a loss in its latest half year, and its price sits far above our fair value estimate. For more income ideas across all sectors, see our list of the highest dividend yield stocks on PSX.
Quality scores
On the Pulse Score, Standard Chartered Bank (Pakistan) scores highest among KSE-100 banks at 76.9, followed by United Bank at 75.6 and Bank Al Habib at 73.2. Some stability checks, such as debt to equity and the current ratio, score poorly for any bank because borrowing and lending is the business itself, so compare banks with each other rather than with companies in other industries.
Banks outside the KSE-100
Smaller listed banks outside the index include BOK (P/B 1.30x, ROE 14.2%), BIPL (P/B 0.54x, ROE 8.4%), JSBL (P/B 0.32x, ROE 7.1%), SNBL (P/B 0.55x, ROE 11.6%), SBL (P/B 0.73x, ROE 2.3%). They are less liquid, so prices can move more on small trades, and several have thinner dividend records.
What to watch for bank stocks
- Interest rates. Bank margins depend on the gap between what they earn on loans and investments and what they pay depositors, so changes in the policy rate feed through to profits.
- Taxes and regulation. Changes to bank taxes or capital rules can change how much profit is left for dividends.
- Asset quality. Watch provisions for bad loans in each set of results; a release of provisions can flatter profit for a quarter.
- Results season. Most banks report quarterly; follow the numbers on each bank’s page on the Market Pulse Hub dashboard, and see our guide to reading a stock page for how to read it.
Frequently asked questions
Which are the best bank stocks in Pakistan?
It depends on what you want. On 30 October 2026, Meezan Bank had the highest return on equity among KSE-100 banks (31.2%), National Bank of Pakistan the highest trailing dividend yield (22.61%) and Bank Alfalah the largest margin of safety against our fair value estimate (31.1%). None of these is a recommendation; each measure has limits explained above.
Why do so many Pakistani banks trade below book value?
7 of the 14 KSE-100 banks traded below 1x book value on 30 October 2026. A low P/B usually reflects lower returns on equity, concerns about asset quality or the outlook for interest rates and taxes. A bank earning a return on equity below what investors require will tend to trade below book.
How is the fair value of a bank calculated?
For banks we use a justified price to book method: the P/B a bank can support given its return on equity, its expected growth and the return investors require, multiplied by its book value per share. It is an estimate that changes with every set of results.
Is a high dividend yield on a bank stock safe?
Not always. A yield is based on past payouts, and dividends can be cut if profits fall or capital rules tighten. National Bank of Pakistan, for example, shows a trailing yield of 22.61% but paid a cash dividend in only 4 of the last 10 years. Check the payout record and the latest results as well as the yield.
Which bank stocks are Shariah-compliant?
Among the KSE-100 banks in this table, Meezan Bank is the only member of the KMI-30 Shariah index. Our KMI-30 stocks list covers the full index.
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Bilal, Market Pulse Hub
Figures are from company results, exchange data and our calculations up to 30 October 2026 and will change as new data arrives. This article is for education only and is not investment advice.