⚡ Flash Summary

The Bank of Khyber (BOK) reported remarkable performance for the nine-month period ended September 30, 2025, with profit after tax surging by 89% year-on-year (YoY) to Rs. 4,973 million. Net Markup/Interest Income increased by 19% YoY to Rs. 14,524 million, driven by robust balance sheet management and successful reduction in funding costs. Non-markup/interest income also saw significant growth, rising by 178% YoY to Rs. 3,648 million, boosted by gains on securities and fee income. The bank is progressing towards becoming a full-fledged Islamic bank, converting 59 conventional branches to Islamic banking, increasing its Islamic branch network to 191 branches.

📌 Key Takeaways

• 🚀 Profit after tax surged by 89% YoY, reaching Rs. 4,973 million.
• 📈 Net Markup/Interest Income increased by 19% YoY to Rs. 14,524 million.
• 💰 Non-markup/interest income rose by 178% YoY to Rs. 3,648 million.
• 💹 Gains on securities amounted to Rs. 2,215 million.
• 🏦 Non mark-up expenses rose by 12% YoY to Rs. 8,527 million.
• 🔄 Net reversal in provisions amounted to Rs. 959 million.
• ⬆ Deposits stood at Rs. 374,340 million, up from Rs. 277,642 million as of December 31, 2024.
• 📉 Gross Advances amounted to Rs. 134,139 million.
• 📊 Net investments stood at Rs. 282,013 million.
• ☪️ Islamic banking branch network increased to 191 branches.
• ⭐ VIS Credit Rating upgraded the Bank’s Medium to Long Term entity rating to AA-.
• ✔️ Short Term rating of the Bank reaffirmed at A1.
• 🏦 Total assets of the Bank increased to Rs. 481,810 million.
• 💳 Launched MasterCard debit card for better services.

🎯 Investment Thesis

Based on the strong financial results and the progress towards becoming an Islamic bank, a BUY recommendation is justified for BOK. The increase in Islamic banking branches and improved credit rating strengthens the bank’s market position. A price target would require more detailed financial projections and sector analysis. The time horizon is medium-term, expecting the transition to full-fledged Islamic bank status to be completed and benefits to be realized.