AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Bank Al Habib (BAHL) held a Corporate Briefing Session to discuss its financial performance for the first nine months of 2025 and outline future strategies. While the bank reported a significant increase in deposits, its market share saw a slight decline.
Deposits rose from Rs2.3 trillion in December 2024 to Rs2.5 trillion by September 2025, indicating a 10% growth. However, the bank’s market share decreased from 7.3% to 6.9% during the same period.
The bank’s current account mix remained stable at 39% as of September 2025, with expectations to stay within the 39%-40% range in 2026. BAHL’s share of saving deposits stands at 40%.
Advances remained nearly flat, contrasting with the industry’s 16% decline. The bank’s market share in total advances improved to 6.88% from 5.74% in December 2024. The textile sector accounted for 30% of total lending, followed by financial services, food and allied industries, and wholesale and retail trade.
The investment portfolio is dominated by Pakistan Investment Bonds (PIBs), comprising 77% with an overall yield of 12.5%.
BAHL has opened 82 branches to date and aims to surpass 100 Islamic branches by 2026. The cost-to-income ratio stood at 57% for the first nine months of 2025, with expectations for stability.
The bank’s Capital Adequacy Ratio (CAR) is at 18.72%, exceeding regulatory requirements. The management intends to maintain the current trend of quarterly dividends and anticipates no change in the interest rate outlook.
BAHL’s trade business market share remained at 11.44% as of September 2025, slightly down from 11.76% a year earlier. The market share in remittances also declined from 9.5% to 8.4%.
Islamic banking generated Rs12.8 billion in profit before tax, accounting for 24% of the total profit before tax. The bank reported a profit after tax of Rs25.4 billion, resulting in earnings per share of Rs22.9, a 23% year-on-year decrease. An interim cash dividend of Rs3.5 per share was announced, bringing the total payout to Rs10.5 per share for the first nine months of 2025.