Dear Valued Shareholders and all Stakeholders of Pubali Bank PLC.,
It is my privilege to present the Annual Report of Pubali Bank for the year 2025. Despite a landscape marked by macroeconomic challenges and periods of socio-economic turmoil, our institution has demonstrated remarkable strategic resilience and operational strength. Our ability to capitalize on investment opportunities and enhance income streams has underscored our foundation as a robust and adaptable financial leader. This success is a direct result of the strategic foresight of our Board, the steady leadership of our Management Team, and the tireless dedication of our employees. We are grateful for the steadfast confidence of our shareholders. This partnership is the engine behind our success, and we remain committed to upholding a legacy of excellence and delivering sustained long-term value.
Macroeconomic Scenario
In 2025, Bangladesh’s economy navigated a period of significant political and structural upheaval, resulting in a record-low GDP growth of 3.49%. To combat high inflation, the central bank maintained a tight monetary policy with a repo rate of 10%, which successfully reduced inflation to 8.49% by the end of the year. However, these measures led to liquidity stress and a slowdown in private sector credit growth. While low revenue mobilization hindered the fiscal sector, it simultaneously pressured the government to increase its borrowings from the banking sector.
The external sector demonstrated strong resilience in 2025, characterized by a $1,941 million balance of payments surplus and a modest rise in foreign exchange reserves to $33.2 billion. This stability was underpinned by a transition toward market-driven exchange rates and a significant 18.05% surge in remittance inflows. While export earnings dipped slightly and Middle East conflicts have introduced new uncertainty, a 16.72% increase in capital machinery imports signals a forthcoming rebound in domestic investment.
The 2025 "governance reset" in the banking sector marked a pivotal shift toward international reporting standards and structural transparency to expose the industry's true health. While this move initially caused the Non-Performing Loan (NPL) ratio to surge to 36%, it later dropped to 30.60% due to central bank’s policy support and a significant rescheduling of irregular loans ahead of the national election. Ultimately, government reforms—anchored by a move toward Risk-Based Supervision (RBS)—signal a strategic transition into a more resilient, technology-driven financial architecture designed to mitigate future systemic risks.
Strategic Resilience and Historic Growth: A Year of Unprecedented Milestones
Pubali Bank delivered a landmark financial performance in 2025, characterized by record-breaking profitability and strategic adaptability despite significant macroeconomic and political volatility. The bank achieved its highest-ever consolidated operating profit of BDT 29,076 million, representing a 26.35% growth, while net profit after tax surged by nearly 40% to reach BDT 10,901 million. This robust growth translated into a strengthened Return on Equity of 15.51% and an increase in earnings per share to BDT 8.38, underscoring the bank's ability to capitalize on investment opportunities in a challenging environment.
The bank’s balance sheet witnessed substantial expansion, particularly in deposit mobilization, which grew by 20.13% to reach BDT 894,840 million. This growth significantly outperformed the national industry average of 11.10%, highlighting strong depositor confidence. Simultaneously, loans and advances increased to BDT 711,964 million, while the Advance-Deposit Ratio moderated to 72.53%, indicating a highly liquid and stable financial position for the institution. In a landmark achievement, our Total Assets surged by 20.25% over the past year, crossing the trillion-mark to reach BDT 1.18 trillion.
Asset quality remained a standout feature of the bank’s operations, with the Non-Performing Loan (NPL) ratio recorded at an impressive 2.20%. This figure is remarkably lower than the industry average of 30.60%, reflecting a disciplined approach to credit risk management and a strong focus on recovery. Furthermore, the bank’s capital base remained solid, with a Capital to Risk-Weighted Assets Ratio (CRAR) of 15.47%, which comfortably exceeds the regulatory requirement of 12.50%.
Complementing its financial stability, Pubali Bank played a vital role in the nation's trade sector. Exports handled by the bank grew by 21.40% to hit BDT 386,643 million, while import figures climbed to BDT 473,137 million, marking a steady 7.37% annual growth. The bank’s commitment to operational excellence and sound banking practices was further validated by Credit Rating Information & Services Limited (CRISL), which assigned the bank continuing its highest "AAA" long-term credit rating. These achievements reinforce the bank's position as a resilient leader in the Bangladeshi banking sector.
Driving Financial Inclusion through Digital Innovation
By leveraging our in-house Core Banking Software and the flagship PI digital app, Pubali Bank has successfully prioritized a strategic shift from conventional to digital banking. This transformation has yielded extraordinary results, with our active PI app user base reaching 528,276 and executing 18.61 million transactions as of 31 December 2025. These figures represent a staggering year-on-year growth of 78% in users and 115% in transactions, cementing the bank's position as a leader with the fastest-growing market share. To support this digital expansion, the bank has also enhanced security through advanced authentication measures to ensure a safe environment for its growing user base.
The bank has also become a dominant force in the Merchant POS Acquiring industry, establishing a nationwide network of 25,525 POS terminals. This achievement was recognized with the prestigious "Excellence in Mastercard Acquiring (Location) 2024–25" award, honoring the bank for deploying the highest number of terminals in the country. Furthermore, Pubali Bank has actively driven national cashless initiatives by deploying over 1.45 lakh Bangla QR codes, facilitating seamless payments across various banks and mobile financial services. This comprehensive approach underscores the bank's commitment to financial inclusion and cutting-edge digital solutions.
With a robust physical and digital footprint, the bank currently operates 519 branches, 279 sub-branches, 22 Islamic Banking windows, and 901 ATM/CRM across the country. Beyond this traditional reach, in 2025, we have introduced “Self-Service Centers” at strategically important locations nationwide, complemented by Self-Service Corners at all branch premises to provide a full suite of digital banking facilities.
Our commitment to a superior value proposition is driven by a strategy that prioritizes financial inclusion and sustained customer engagement. We empower our clients by fulfilling their financial needs through the most appropriate and convenient distribution channels of their choice.
Integrating ESG Principles: A Strategic Review of Pubali Bank’s 2025 Sustainability Milestones
Pubali Bank has significantly integrated environmental, social, and governance (ESG) principles into its core operations, highlighted by a sustainable finance portfolio that accounts for 30% of its total loans and advances as of December 31, 2025. The bank has committed to achieving Net-Zero emissions by 2050, aligning with UN global targets through a Board-approved Decarbonisation Policy. This strategic shift is supported by the first-time adoption of IFRS S1 and S2 Sustainability Disclosure Standards and comprehensive tracking of Scope 1, 2, and 3 emissions.
Pubali Bank demonstrates environmental stewardship by financing 37 LEED-certified factories and implementing solar power across 411 branches and 453 ATM/CRMs. The Bank is reducing its physical footprint through a "Paperless Transformation" powered by its core banking solution and PI Banking App with e-KYC. Further green initiatives include a 3-R based Waste Management Policy and rainwater harvesting at the Uttara Data Recovery Center.
Global collaboration remains a cornerstone of the bank's sustainability strategy through partnerships with organizations such as the IFC, ADB, and PCAF. Notable logistics initiatives include a partnership with DHL Express to utilize Sustainable Aviation Fuel (SAF) for carbon-reduced shipping. Additionally, the bank maintains a strong focus on ecological preservation, having planted 73,149 trees in 2025 with a particular emphasis on protecting coastal areas.
Strategic Priorities for 2026: A Path to Future-Ready Banking
Our strategic focus for 2026 is centered on regaining a robust growth trajectory by aligning with Bangladesh's recovering economy through a "Phygital" and tech-forward approach. We aim to solidify our position as the nation’s leading private commercial bank by leveraging cutting-edge technological advancements to optimize costs and ensure service excellence. Our strategic focus remains on bridging the gap between traditional banking and the digital future, ensuring we remain agile in an evolving economy.
In 2026, we are launching an intensive, year-long campaign to drive cashless banking across, targeting key sectors, including the Retail, Health, Education, Corporate, and CMSME. This robust outreach is designed to build a seamless digital ecosystem that enhances accessibility and efficiency for all our stakeholders. By preparing our workforce for these advancements, we ensure our operations remain future-ready and capable of delivering an elevated customer experience.
To ensure long-term sustainability, we are prioritizing the diversification of our asset book through disciplined expansion in the Corporate, Retail, and CMSME sectors. This growth will be anchored by a rigorous commitment to asset health, focusing on resilient sectors while simultaneously strengthening our capital foundation. We remain dedicated to intensifying the recovery of non-performing loans and arresting fresh credit slippages to maintain a healthy, resilient portfolio.
Central to our 2026 outlook is the integration of ESG principles, embedding green finance and social responsibility into our core banking operations. By bridging our storied legacy with a digital-first future, we are committed to delivering sustainable value to all stakeholders. Our goal is to balance innovation with disciplined risk management, ensuring we remain a trusted and stable institution in an evolving financial landscape.
Strategic plan 2026-2028
Pubali Bank’s Strategic Plan (2026-2028) is anchored in a vision To provide customer-centric, lifelong banking services. We aim to be Bangladesh’s most trusted and sustainable financial partner by blending digital innovation with our heritage of responsible banking. By delivering a superior value proposition and fulfilling financial needs at every life stage, we ensure that our services are accessible and economical across all distribution channels. To maintain our position as the nation's most secure bank, we emphasize innovative risk management and strict compliance. This strategic period will prioritize the PI Digital Banking App as a tool for inclusive and instantaneous banking, alongside the expansion of our Islamic Banking Wings as the most trusted provider of Shari’ah-compliant financial solutions in the community.
Closing with Gratitude
I would like to express my profound appreciation to the Board of Directors for their strategic foresight and unwavering support, which have been instrumental in navigating the complexities of the past year. My sincere thanks go to our Management Team for their steady leadership and to our employees for their tireless dedication and commitment to operational excellence.
We are deeply grateful to our valued shareholders for their steadfast confidence and to our customers for their continued trust in our services. It is this enduring partnership that drives our success and motivates us to deliver sustained, long-term value.
I also extend my gratitude to the Government of Bangladesh, the Bangladesh Bank, and all regulatory authorities for their guidance and support as we transition toward a more resilient and transparent financial architecture. As we look toward 2026 and beyond, we remain committed to serving as your most trusted and sustainable financial partner.
With best regards,
Mr. Mohammad Ali
Managing Director