HMB posts slight half-year profit rise

August 13, 2025 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) reported a profit after taxation of Rs12.01 billion for the half-year ended June 30, 2025, marking a marginal increase of 0.36% compared to Rs11.96bn in the same period last year.

The bank has declared an interim cash dividend of Rs2.5 per share (25%), in addition to the interim cash dividend already paid at the same rate.

The bank’s basic and diluted EPS stood at Rs11.11, slightly down from Rs11.12 in the previous period, reflecting a 0.09% decrease.

Equity shareholders’ earnings remained largely stable at Rs11.64bn, while non-controlling interest rose by 17.22% to Rs370.77 million.

Net mark-up/interest income grew by 11.88% to Rs36.03bn, driven by mark-up/interest earned of Rs83.86bn, despite a 31.72% decline compared to Rs122.82bn in FY2024.

Mark-up/interest expense decreased by 47.21% to Rs47.83bn.

Non mark-up/interest income increased by 24.04% to Rs11.73bn, supported by growth in fee and commission income (14.44% to Rs5.63bn), dividend income (26.11% to Rs447.42m), foreign exchange income (22.52% to Rs4.19bn), and gains on securities (102.27% to Rs1.39bn). Other income rose 36.47% to Rs80.39m.

Operating expenses climbed by 23.07% to Rs19.89bn, including the Workers’ Welfare Fund at Rs529.99m (14.69% increase) and other charges rising sharply by 295.53% to Rs287.9m.

Total non mark-up/interest expenses increased by 24.02% to Rs20.71bn.

Profit before credit loss allowance amounted to Rs27.05bn, up 8.36% from Rs24.96bn last year.

Credit loss allowance declined by 45.74% to Rs1.12bn, resulting in profit before taxation of Rs25.93bn (13.24% growth). Taxation rose 27.32% to Rs13.92bn.

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