PACRA maintains BAHL's AAA, stable outlook

June 29, 2026 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of Bank AL Habib Limited (PSX: BAHL) at AAA for long-term and A1+ for short-term, with a Stable outlook, as of June 23, 2026.

The ratings show BAHL's strong market position, prudent lending approach developed over more than three decades, and a consistent record of financial stability across different economic cycles.

Trade finance leadership, sound asset quality, and a resilient funding profile collectively position the Bank among the most credibly rated commercial banks in Pakistan.

BAHL continued its branch expansion during CY25, adding 102 new branches to bring the total network to 1,323 branches.

The Islamic banking network now encompasses 392 dedicated branches, with 1,329 branches recorded in 1QCY26. Islamic banking is increasingly emerging as a material contributor to the Bank's future growth trajectory.

On the balance sheet, the investment portfolio stood at Rs2.03tr, up from Rs1.92tr in CY24, concentrated predominantly in government securities.

Shareholders' equity, excluding revaluation surplus, grew 8.7% to Rs141.8bn, while total equity stood at Rs171.3bn. Capital adequacy remained comfortably above regulatory requirements.

Advances declined to Rs792.1bn from Rs910.9bn in CY24, reflecting a management-led consolidation drive anchored in the Bank's discipline of avoiding exposures where risk-reward does not meet its established standards.

The Bank recorded net credit loss allowance reversals of Rs2.4bn during CY25, against a charge of Rs14.9bn in CY24, driven by recoveries on previously provisioned exposures.

Profitability moderated during the year amid policy rate compression, with net mark-up income declining to Rs130.6bn from Rs156.2bn in CY24. Profit after tax fell 23.1% to Rs30.6bn from Rs39.9bn.

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