BAHL Q1 profit falls 32% to Rs7.3bn, declares Rs3.50 dividend

April 23, 2026 (MLN): Bank AL Habib Limited (PSX: BAHL) reported a consolidated profit after taxation of Rs7.27bn for the quarter ended March 31, 2026, showing a 32.16% decline compared to Rs10.72bn in the same period last year.

Earnings per share (EPS) also decreased sharply to Rs6.54 versus Rs9.65 in Q1 2025, marked a decline of 32.23% YoY. The bank declared an interim cash dividend of Rs3.50 per share (35%) for the period.

The bank’s core income showed weakness during the period, as mark-up/return earned declined by 11.17% to Rs82.58bn compared to Rs92.97bn last year. Mark-up/return expensed also fell by 15.81% to Rs49.94bn.

As a result, net mark-up/interest income declined by 3.00% YoY to Rs32.64bn, compared to Rs33.64bn in the corresponding quarter last year.

Non-markup income witnessed a decline of 7.13% to Rs7.99bn from Rs8.60bn last year, mainly due to pressure on fee-based and investment-related income.

Fee and commission income fell by 5.51% to Rs5.73bn, while dividend income edged down 1.70% to Rs67.74mn. However, foreign exchange income increased by 4.52% to Rs2.27bn, providing some support to revenues.

On the downside, loss on securities widened significantly by 277.31% to Rs922.34mn. Meanwhile, share of profit from associates surged by 196.63% to Rs629.40mn, partially offsetting weaker streams. Other income declined sharply by 34.24% to Rs222.51mn.

Overall, total non-markup income stood at Rs7.99bn, down 7.13% YoY.

Total income for the bank declined by 3.84% YoY to Rs40.63bn compared to Rs42.25bn in the same period last year.

On the expense side, operating expenses rose by 10.92% to Rs23.99bn, reflecting inflationary and operational cost pressures. Workers’ welfare fund declined by 23.04% to Rs332.04mn, while other charges dropped 52.93% to Rs3.27mn.

Total non-markup expenses increased by 10.24% to Rs24.33bn.

Profit before credit loss allowance dropped 19.24% to Rs16.30bn versus Rs20.18bn last year.

Credit loss allowance and write-offs recorded a net charge of Rs982.39mn compared to a net reversal of Rs1.16bn in the corresponding period, indicating a significant negative swing in provisioning.

As a result, profit before taxation declined by 28.22% to Rs15.31bn from Rs21.34bn last year.

Taxation expense fell by 24.23% to Rs8.04bn. However, despite lower tax outflow, the decline in pre-tax earnings led to a 32.16% drop in profit after taxation, which stood at Rs7.27bn.

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