Pakistan’s banking sector continued to improve its funding structure in 2025 by increasing its share of low-cost deposits, helping banks protect profits.
Data shared by Arif Habib Limited (AHL) shows that current accounts (deposits on which banks do not pay interest) rose to 41 percent of total deposits in 2025, up from 36 percent in 2024. This shift means banks are relying more on cheaper sources of funding.
In total, current account deposits increased by Rs. 4.7 trillion, reaching Rs. 16.3 trillion, indicating strong growth in deposits across the system.
This higher share of low-cost deposits is expected to support banks’ net interest margins (NIMs), which is a key measure of profitability.
Among major banks, Standard Chartered Bank Pakistan has the highest share of current accounts at 59 percent. It is followed by United Bank Limited at 51 percent, MCB Bank at 49 percent, and Meezan Bank at 48 percent.
Overall, the trend shows banks are becoming more efficient by relying on cheaper deposits, which can help maintain strong earnings even if economic conditions take a turn for the worst.