HMB profit drops 10% to Rs23bn, declares Rs12 dividend

February 13, 2026 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) reported a profit after tax (PAT) of Rs23.16 billion for the year ended December 31, 2025, showing a 10.1% decline compared to Rs25.77bn in the previous year.

Earnings per share (EPS) fell to Rs21.63 from Rs23.80.

The board declared a final cash dividend of Rs4.50 per share (45%), in addition to interim dividends of Rs7.50 per share (75%) already paid, taking the total payout for CY25 to Rs12.00 per share (120%).

The bank’s mark-up/return/interest earned declined 32.2% year-on-year to Rs163.62bn from Rs241.20bn, largely showing the impact of a lower interest rate environment and reduced asset yields.

However, mark-up/return/interest expensed fell at a steeper pace of 43.4% to Rs95.51bn from Rs168.76bn.

As a result, net mark-up/interest income (gross profit) stood at Rs68.11bn, down 6.0% from Rs72.45bn in CY24, indicated relative resilience in spreads despite rate compression.

Total non-mark-up/interest income increased 15.4% to Rs24.73bn from Rs21.43bn, providing support to the topline.

Fee and commission income rose 5.4% to Rs11.42bn, while dividend income grew 23.4% to Rs956.7m.

Foreign exchange income improved 16.2% to Rs8.24bn.

Notably, net gain on securities surged 60.9% to Rs3.99bn compared to Rs2.48bn last year, contributing significantly to non-funded income growth.

Other income, however, declined 49.4% to Rs122.6m.

Total income edged down 1.1% to Rs92.84bn from Rs93.88bn in the preceding year, as lower net interest income offset gains in non-mark-up income.

On the expense side, total non-mark-up/interest expenses rose 15.3% to Rs40.84bn from Rs35.43bn.

Operating expenses increased 16.0% to Rs39.52bn, showing inflationary pressures and branch expansion-related costs. Workers’ welfare fund expense declined 13.2% to Rs1.02bn, while other charges rose 56.6% to Rs294.1m.

Profit before credit loss allowance decreased 11.0% to Rs52.0bn from Rs58.45bn in CY24, in line with lower core income generation.

The bank recorded a net credit loss allowance and write-offs charge of Rs1.99bn, significantly lower than Rs4.34bn booked in the prior year, indicating improved asset quality and lower provisioning requirements.

Consequently, profit before taxation stood at Rs50.01bn, down 7.6% from Rs54.10bn last year.

The taxation expense declined 5.3% to Rs26.85bn from Rs28.34bn, partially cushioning the impact of reduced profitability.

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