HBL PAT nears Rs68bn in CY2025

February 18, 2026 (MLN): Habib Bank Limited (PSX: HBL) posted a profit after tax (PAT) of Rs66.76bn for the year ended December 31, 2025, marking a 15.5% year-on-year (YoY) increase compared to Rs57.80bn in CY24.

Earnings per share (EPS) rose to Rs45.48 from Rs39.85 last year, up 14.13% YoY.

The board declared a final cash dividend of Rs6.00 per share (60%), in addition to an interim dividend of Rs14.00 per share (140%) already paid, bringing the total payout for CY25 to Rs20.00 per share (200%).

Mark-up/return/profit/interest earned declined 16.22% YoY to Rs681.26bn from Rs813.19bn, showing the impact of lower interest rates and compressed asset yields during the year.

However, mark-up/return/profit/interest expensed fell at a steeper rate of 28.51% YoY to Rs405.76bn from Rs567.57bn, indicating significantly reduced funding costs across the bank's deposit base.

As a result, net mark-up/interest income surged 12.16% YoY to Rs275.50bn compared to Rs245.62bn in CY24, highlighting continued spread expansion despite the declining rate environment.

Total non-mark-up/interest income declined 11.30% YoY to Rs85.61bn from Rs96.51bn. Fee and commission income dipped 5.35% to Rs46.88bn, while dividend income rose 14.54% to Rs3.53bn.

Share of profit from associates climbed 36.83% to Rs6.52bn, and foreign exchange income increased 12.89% to Rs8.91bn.

Income from derivatives dropped sharply 52.69% to Rs2.73bn, whereas gain on securities (net) rose 30.23% to Rs13.63bn. Other income fell steeply 77.26% to Rs3.41bn from Rs15.01bn in the prior year.

Despite weaker non-mark-up income, total income increased 5.55% YoY to Rs361.11bn from Rs342.13bn, primarily driven by robust net interest income growth amid a favorable spread environment.

On the cost side, total non-mark-up/interest expenses rose 4.46% YoY to Rs203.89bn from Rs195.20bn. Operating expenses increased 4.27% to Rs200.70bn amid ongoing business expansion and inflationary pressures.

Workers' Welfare Fund (WWF) surged 20.70% to Rs2.85bn, while other charges eased 5.14% to Rs339m from Rs357m.

Profit before credit loss allowance and taxation grew 6.99% YoY to Rs157.21bn from Rs146.94bn.

The bank recorded a net credit loss allowance and write-off charge of Rs9.12bn, significantly lower than the Rs26.60bn booked in CY24, a decline of 65.71%, showing an improved asset quality environment and reduced provisioning requirements.

Consequently, profit before taxation climbed 23.07% YoY to Rs148.09bn from Rs120.33bn. Taxation increased 30.06% YoY to Rs81.33bn from Rs62.53bn, leading to the reported PAT of Rs66.76bn.

HBL’s deposits climbed to Rs5.5tr in 4Q2025 an all-time high emphasizing strong growth in its deposit base and reinforcing its funding strength amid an evolving interest rate environment.

Copyright Mettis Link News