Banks Sector — PSX Analysis
The banking sector is the backbone of Pakistan's financial system. Banks generate revenue through interest income (or profit from Islamic financing), fee-based services, and trading income. The sector is dominated by large private and public-sector banks.
At a Glance
- Companies tracked
- 14
- Valuation approach
- Financials
- Reference P/E
- 7-10x
- Reference P/B
- 1.2-1.8x
- Reference dividend yield
- 5-7%
Reference ranges are SeekhKar editorial benchmarks for comparison, not live market figures. To check a company against them, use today's price from your broker and its latest reported EPS, book value and dividends. Models used: Justified P/B and Dividend discount model.
Banks Stocks Compared
The listed companies side by side on their latest results: P/E, P/B, dividends, growth and debt.
BOP vs HabibMetro vs Askari vs ABL vs SCB: Bank Stocks 2026
Bank of Punjab, HabibMetro, Askari, Allied Bank and Standard Chartered compared on P/E, P/B, ROE, dividend yield and 9M 2026 profit growth.
Updated 3 Nov 2026 · 6 min read
Bank AL Habib vs NBP vs Alfalah vs Faysal: Bank Stocks 2026
Bank AL Habib, NBP, Bank Alfalah and Faysal Bank on P/E, P/B, ROE, dividend yield and 9M 2026 profit growth. Which bank stock is the best value now?
Updated 2 Nov 2026 · 6 min read
Meezan vs Faysal vs Bank Makramah: Islamic Bank Stocks 2026
Meezan Bank, Faysal Bank and Bank Makramah, the KSE-100's Islamic banks, on P/E, P/B, ROE, dividends and 9M 2026 results. Which looks better?
Updated 2 Nov 2026 · 5 min read
UBL vs Meezan vs HBL vs MCB: Best Bank Stock 2026
UBL, Meezan Bank, HBL and MCB compared on P/E, P/B, ROE, dividend yield and 9M 2026 profit growth. Which big bank stock is the best value now?
Updated 31 Oct 2026 · 9 min read
Earnings Drivers
Interest rates, government borrowing, private sector credit growth, NPL levels, and fee income from remittances and trade finance.
Key Metrics to Watch
NPL ratio, Capital Adequacy Ratio (CAR), Return on Equity (ROE), Net Interest Margin (NIM), and Cost-to-Income ratio.
Investment Risks
NPL accumulation during economic downturns, government crowding out of private credit, FX volatility impacting capital adequacy, and regulatory changes.
How to Value Companies in the Banks Sector
Financials. Banks and other financials hold mostly financial assets and liabilities. Their value depends on return on equity relative to the cost of equity, and on dividends. "Free cash flow" is not meaningful for them and the Graham Number ignores leverage, so both are excluded.
Justified P/B
Book value × (ROE − growth) ÷ (required return − growth): values a bank on how much it earns on shareholders' equity.
Dividend discount model
Next year's dividend ÷ (required return − dividend growth): suits companies that pay out most of their profit.
SeekhKar's own models assume a 18% required return for this sector and 5% long-term growth. Use them as a starting point in the calculators and test higher and lower values. These are editorial assumptions, explained on the Methodology page.
Frequently Asked Questions
Calculators for This Sector
Run the methods that suit Banks companies with figures from their latest reports: