Habib Bank Sees Growth in Deposits and Earnings Amid Strategic Adjustments

Karachi: Habib Bank Limited (HBL) reported significant growth in deposits and earnings during its latest Corporate Briefing Session, detailing a series of strategic financial maneuvers. The bank’s total deposits increased by 16% in the first nine months of 2025, reaching Rs5.1 trillion, with current accounts alone growing by Rs371 billion to Rs1.94 trillion.

Net interest income rose by 11% year-over-year, attributed to growth in current accounts and a reduction in the cost of deposits. HBL’s investment portfolio stands robustly at Rs4.0 trillion, with a significant portion in Floater PIBs and Fixed PIBs.

The bank’s domestic advances saw a decline, dropping from Rs1.95 trillion in December 2024 to Rs1.43 trillion by September 2025, while its international loan portfolio expanded by US$175 million. Consumer lending, however, grew by 15% over the same period.

Operational efficiency improved, as evidenced by a decline in the Cost-to-Income Ratio both at the group and domestic levels. The infection ratio saw a slight improvement, while the bank’s coverage ratio increased.

HBL maintained a strong Capital Adequacy Ratio of 18.3%. The bank also reported a significant uptick in digital transactions, with mobile banking payments reaching Rs8 trillion, marking a 47% increase year-over-year.

The bank continues to lead in the cards market, holding substantial market shares in credit and debit cards. Despite a stable interest rate outlook, HBL’s consolidated earnings rose by 17%, with a dividend payout reinforcing investor confidence.

HBL remains a buy recommendation, trading at favorable price-to-earnings and price-to-book value ratios, supported by a steady dividend yield.