HMB 9MCY26 profit drops 19%

October 23, 2026 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) reported a 19% decline in its consolidated net profit for the nine months ended September 30, 2026 (9MCY26), recording Rs14.31bn compared to Rs17.76bn in the corresponding period last year.

Alongside the financial results, the board declared an interim cash dividend for the period of Rs2.5 per share.

Reflecting this bottom-line compression, basic and diluted earnings per share (EPS) attributable to equity holders fell to Rs13.07, down from Rs16.44 in 9MCY25.

For the third quarter (Q3CY26) alone, net profit stood at Rs4.61bn (EPS of Rs4.24) compared to Rs5.75bn (EPS of Rs5.34) in Q3CY25.

The primary factor behind the nine-month performance was a 12% compression in net mark-up income alongside higher operating overheads, which offset gains in foreign exchange income and dividend receipts.

Gross mark-up/return earned held flat at Rs123.81bn. After mark-up/return expensed of Rs77.68bn (up 9%), net mark-up income settled at Rs46.13bn compared to Rs52.40bn in 9MCY25.

On the non-mark-up income front, foreign exchange income expanded 16% to Rs7.12bn, dividend income rose 40% to Rs881.95m, and fee and commission income held firm at Rs8.44bn.

However, net gains on securities declined 40% to Rs1.66bn (down from Rs2.75bn). Total non-mark-up income edged up slightly to Rs18.18bn, while total income contracted 9% to Rs64.31bn.

On the operational side, operating expenses expanded 15% to Rs34.20bn, bringing total non-mark-up expenses to Rs34.81bn.

Profit before credit loss allowance fell 25% to Rs29.50bn. However, bottom-line performance was supported by net credit loss allowance write-offs/reversals of Rs240.87m (reversing a charge of Rs1.17bn in 9MCY25), resulting in profit before taxation of Rs29.74bn (down 22% from Rs38.37bn).

The bank absorbed a reduced corporate taxation charge of Rs15.43bn for the period (down 25% from Rs20.61bn in 9MCY25). Supported by foreign exchange income gains and net credit loss reversals, Habib Metropolitan Bank Limited closed the nine-month period with a net profit of Rs14.31bn.

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