BAHL reports rise in after-tax earnings

April 24, 2025 (MLN): Bank AL Habib Limited (PSX: BAHL) has posted a 4.59% increase in profit after tax for the quarter ended March 31, 2025, clocking in at Rs10.72 billion compared to Rs10.25bn in the same period last year.

The bank has declared an interim cash dividend of 35%, amounting to Rs3.5 per share.

Earnings per share (EPS) for the quarter rose to Rs9.65 from Rs9.22, reflecting a growth of 4.66%.

The bank’s net interest income declined by 9.38% to Rs33.64bn, as mark-up/return/interest earned dropped by 22.39%, while mark-up/return/interest expensed saw a steeper fall of 28.23%.

Despite the dip in net interest income, non-mark-up income rose by 7.45% to Rs8.6bn, largely supported by a 31.97% jump in fee and commission income and modest growth in other income.

However, income from derivatives swung into a loss of Rs244 million, while profit share from associates dropped by 31.08%.

On the expense side, operating costs surged by 19.23% to Rs21.63bn, pushing total non-mark-up expenses up by 18.04% to Rs22.07bn.

The bank reported a notable turnaround in credit performance, recording a net reversal of Rs1.16bn in credit loss allowances, compared to a charge of Rs6.87bn in the same period last year.

As a result, profit before taxation increased by 9.06% to Rs21.34bn. However, taxation rose by 13.98%, amounting to Rs10.61bn for the quarter.

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