HBL posts Rs34.5bn half-year profit, declares Rs12 dividend

August 04, 2026 (MLN): Habib Bank Limited (PSX: HBL) recorded a marginal 0.26% increase in its consolidated net profit for the six months ended June 30, 2026, with profit after taxation edging up to Rs34.54bn from Rs34.45bn in the corresponding period last year.

Showing this broadly stable bottom-line, the bank's earnings per share (EPS) rose marginally to Rs23.51 from Rs23.44 in 1HFY25.

The Board of Directors has announced an interim cash dividend of Rs6.00 per share (60%) for the half year ended June 30, 2026.

This is in addition to the interim cash dividend of Rs6.00 per share (60%) already paid, bringing the total cash dividend declared for 1HFY26 to Rs12.00 per share.

Total income grew modestly by 3% year-on-year to Rs186.91bn from Rs181.92bn in the prior period.

On the core banking spread, mark-up/return/profit/interest earned rose 15% to Rs373.62bn, but mark-up/return/profit/interest expensed grew at a faster pace of 26% to Rs233.33bn, squeezing net mark-up/interest income to a modest 2% growth at Rs140.29bn from Rs137.64bn.

The performance of non-markup/interest income was mixed. Fee and commission income grew 16% to Rs25.81bn, foreign exchange income surged 84% to Rs7.56bn, and dividend income nearly tripled to Rs4.82bn from Rs1.76bn.

Share of profit of associates and income from derivatives both held broadly stable.

However, these gains were partially offset by a sharp 67% decline in net gain on securities to Rs3.13bn from Rs9.44bn, and a 61% drop in other income to Rs906.05m from Rs2.33bn. In aggregate, total non-markup/interest income still managed a 5% increase to Rs46.62bn from Rs44.27bn.

On the expenditure side, operating expenses rose 6% to Rs106.87bn, while Workers' Welfare Fund was broadly flat at Rs1.44bn.

Other charges climbed 60% to Rs179.43m. Total non-markup/interest expenses rose 6% to Rs108.49bn from Rs101.94bn.

Profit before credit loss allowance and taxation eased 2% to Rs78.43bn. Credit loss allowance and write-offs net increased 15% to Rs5.33bn from Rs4.63bn, adding a further drag and pulling profit before taxation down 3% to Rs73.10bn from Rs75.35bn.

The development that preserved the bottom-line was a lower tax burden. Taxation declined 6% to Rs38.56bn from Rs40.90bn a proportionally larger reduction than the pre-tax dip providing the cushion that kept profit after taxation virtually flat and delivered the marginal gain for the half year.