AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Habib Bank Limited (HBL) announced its financial results for the third quarter of the calendar year 2025, reporting a net profit after tax (NPAT) of PkR16.9 billion, or an earnings per share (EPS) of PkR11.5. This marks a 17% increase compared to the same period last year, though it represents a 5% decline from the previous quarter. The results align with market expectations.
The bank declared an interim cash payout of PkR5.0 per share, surpassing analysts’ forecasts, bringing the total cash payout for the first nine months of 2025 to PkR14.0 per share.
Net interest income (NII) for the quarter totaled PkR69.7 billion, reflecting an 8% year-on-year increase and a 1% rise from the previous quarter. This growth is attributed primarily to a larger average investment book.
HBL’s mark-up earned stood at PkR179.9 billion, an 18% year-on-year decrease, but an 8% increase quarter-on-quarter. Meanwhile, mark-up expenses were PkR110.2 billion, showing a 29% decline year-on-year and a 12% increase quarter-on-quarter. The bank’s net interest margins (NIMs) decreased to 4.4% from 4.8% in the last quarter.
Non-interest income reached PkR23.3 billion, a 10% year-on-year increase and a 3% rise from the previous quarter. This growth was driven by higher foreign exchange income of PkR2.7 billion, compared to a loss of PkR583 million in the same period last year and income of PkR1.9 billion in the previous quarter.
Operating expenses increased to PkR52.9 billion, up 9% year-on-year and 4% quarter-on-quarter. The cost-to-income ratio stood at 57.0%, slightly higher than 56.8% in the same quarter last year and 55.7% in the previous quarter.
Credit provisioning was significantly lower at PkR3.1 billion, compared to PkR8.9 billion in the third quarter of the previous year.
The effective tax rate for the quarter was 54.0%, compared to 49.3% in the same period last year and 54.0% in the previous quarter.
AKD Securities Limited maintained a ‘BUY’ stance on HBL, with a target price of PkR401 per share by June 2026. The firm’s positive outlook is based on the bank’s expansion of its low-cost deposit base, technological advancements in transaction channels, improved asset quality, and strategic book building.