HMB 1HCY26 profit drops 19%, declares Rs2.5 dividend

August 13, 2026 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) reported a 19% decline in its consolidated net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs9.7bn compared to Rs12.01bn in the corresponding period last year.

Alongside the financial results, the bank announced an interim cash dividend of Rs2.50 per share.

Reflecting this bottom-line compression, the bank's basic and diluted earnings per share (EPS) attributable to equity shareholders fell to Rs8.83 for the half-year, down from Rs11.11 in 1HCY25.

The primary factor dragging overall earnings was a compression in net mark-up income.

Mark-up/interest earned dipped slightly by 1% to Rs82.78bn, while mark-up expensed expanded by 9% to Rs52.01bn.

Consequently, net mark-up income contracted by 15% year-on-year, settling at Rs30.77bn compared to Rs36.03bn in 1HCY25.

On the non-interest front, performance remained relatively resilient.

Total non-mark-up income grew by 4% to Rs12.23bn (up from Rs11.73bn), supported by a 16% increase in foreign exchange income (Rs4.88bn) and a 42% jump in dividend income (Rs634.68m).

These gains helped cushion a 26% decline in net gains on securities (Rs1.03bn). Driven by core mark-up compression, total income contracted by 10% to Rs43bn.

On the expense side, operating expenses rose by 13% to Rs22.56bn to support ongoing operations, pushing total non-mark-up expenses up by 11% to Rs22.97bn.

Consequently, profit before credit loss allowance fell 26% to Rs20.04bn.

Below the pre-provision line, HMB benefited from a significant reduction in provisioning charges.

Net credit loss allowance and write-offs plummeted by 96% to Rs40.13m (down from Rs1.12bn in 1HCY25), bringing profit before taxation to Rs20bn, down 23% year-on-year.

The bank absorbed a 26% lower taxation expense of Rs10.30bn (down from Rs13.92bn).

Supported by lighter tax outlays and reduced credit provisions, Habib Metropolitan Bank Limited securely closed the six-month period with a final net profit of Rs9.70bn.

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