The Bank of Khyber

Legal Status and Identity

The Bank of Khyber was established under The Bank of Khyber Act, 1991. It subsequently obtained its status as a scheduled bank in September 1994, allowing it to operate within the country's regulated banking framework.

The institution's official name remains The Bank of Khyber. While an amendment was passed in 2022 to change the name to Bank of Khyber, source materials indicate that the associated regulatory approval process was still in progress.

Ownership and Governance

The Bank of Khyber operates as a public-sector provincial bank. Its ownership structure reflects its public role, with the Government of Khyber Pakhtunkhwa being the majority shareholder.

As of December 31, 2024, the Government of Khyber Pakhtunkhwa held 70.20% of the bank's shareholding. According to available official information, the bank's leadership includes Ikramullah Khan as Chairman and Hassan Raza as the Managing Director and CEO.

Strategic Conversion to Islamic Banking

The bank is undergoing a formal strategic conversion of its conventional banking operations and branches into a Shariah-compliant Islamic banking model. This transition involves the systematic migration of customers from conventional branches to Islamic accounts and financing modes.

This business model shift is reflected in the bank's public presentation, which includes product families for personal, business, corporate, and agriculture banking, while concurrently highlighting a significant and growing portfolio of Islamic banking services.

Products and Service Channels

The Bank of Khyber provides a range of banking products and financial services. Its offerings cater to individuals, including specific segments such as women, pensioners, youth, and senior citizens, as well as institutional clients in the SME, business, and corporate sectors. The bank also provides agriculture-related financing.

Core product categories include various deposit accounts and term-deposit products, remittance and payment services, and card facilities. The financing portfolio covers consumer, home, business, and trade finance, alongside a comprehensive suite of Islamic financing modes. Customers can access these services through a nationwide branch network, ATMs, internet and mobile banking platforms, and a WhatsApp banking channel.

Branch Network Evolution

The bank's physical footprint has evolved in line with its strategic conversion to Islamic banking. As of December 31, 2024, the network consisted of 246 branches, of which 131 were Islamic branches. By March 31, 2025, the network comprised 246 branches and 40 sub-branches, with 131 branches and 16 sub-branches dedicated to Islamic banking, supplemented by 97 Islamic Banking Windows at conventional branches.

The conversion process continued through 2025. By June 30, 2025, the network still had 246 branches, but the number of full-fledged Islamic branches had increased to 167, with 77 Islamic Banking Windows remaining. Later reporting from 2025 indicated a network of 254 branches and 14 booths, with the composition shifted to 199 Islamic branches and 55 conventional branches following further conversions.

Financial Performance

For the full year ending December 31, 2024, The Bank of Khyber reported a profit before tax of Rs. 8,135 million and a profit after tax of Rs. 3,615 million. Total assets stood at Rs. 477,564 million, with deposits at Rs. 277,642 million. Gross advances were Rs. 159,624 million, and investments reached Rs. 282,767 million. The earnings per share (EPS) for the year was Rs. 3.12.

For the half-year ending June 30, 2025, the bank recorded a profit before tax of Rs. 7,194 million and a profit after tax of Rs. 3,365 million, with an EPS of Rs. 2.91. At that time, total assets were Rs. 537,205 million, deposits were Rs. 382,010 million, and investments stood at Rs. 351,703 million. Subsequent reporting for a later period in 2025 showed a profit before tax of Rs. 12,282 million, profit after tax of Rs. 5,816 million, and an EPS of Rs. 5.02. Deposits were recorded at Rs. 378,123 million, with total equity at Rs. 23,677 million.