Bank AL Habib Limited Maintains AAA Rating Amid Improved Profitability and Deposit Growth

Karachi: Bank AL Habib Limited has successfully maintained its long-term AAA rating for its Tier II TFC VIII debt instrument, as affirmed by The Pakistan Credit Rating Agency Limited (PACRA). The bank’s steady performance is underpinned by its efforts to enhance its competitive positioning, despite a challenging banking landscape.

According to The Pakistan Credit Rating Agency Limited, Bank AL Habib has demonstrated considerable growth in its deposit base, which increased by 15% to PKR 2,222 billion by the end of the third quarter of 2024. The rise was primarily driven by a 17% growth in customer deposits. The bank’s current account savings account (CASA) ratio also improved to approximately 75%. However, gross advances decreased to PKR 814 billion, with the bank’s advance share slightly dropping to 7.0%.

The non-performing loans increased by 38% to approximately PKR 35 billion, leading to an infection ratio of 4.29%. Despite this, Bank AL Habib’s investments rose to PKR 1.81 trillion, with a decline in the advances-to-deposits ratio to around 37%. The bank reported a profit after tax of PKR 33 billion, bolstered by increased markup income and a 33% rise in other income streams. The bank’s capital adequacy ratio improved to 19.63%, reflecting robust profitability.

The bank’s rating remains contingent on maintaining a stable risk profile, with its equity base and CAR providing a cushion for further growth.

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