Habib Bank Limited reported consolidated earnings per share of PKR 12.51 in 2QCY26, up 3% from PKR 12.12 in 2QCY25. This translates into profit after tax of PKR 18.4 Bn compared to PKR 17.8 Bn in SPLY. The bank declared a dividend of PKR 6 per share in 2QCY26, up 33% from PKR 4.5 in 2QCY25. Total revenue in 2QCY26 reached PKR 95.0 Bn against PKR 91.6 Bn in 2QCY25, an increase of 4%.
This was primarily driven by a 15% increase in non-mark-up income from PKR 22.7 Bn in 2QCY25 to PKR 26.1 Bn in 2QCY26. The bank saw its total deposits rise from PKR 5.39 Trn at the end of 1QCY26 to PKR 5.92 Trn at the end of 2QCY26, an increase of 10% QoQ and 14% YoY.
Current accounts clocked in at PKR 2.16 Trn during the period and now form 42% of domestic deposits. The management apprised that moving forward, they are targeting to maintain market share in deposits and placing a special emphasis on low-cost deposits. Investments stood at PKR 4.5 Trn at the end of 2QCY26, down 6% from PKR 4.8 Trn at the end of 1QCY26.
Management highlighted that out of its portfolio of investments of PKR 4.5 Trn, PKR 1,068 Bn is invested in fixed rate PIBs and PKR 2.4 Trn in PIB Floaters. The portfolio also includes PKR 636 Bn in T Bills. Average duration of the portfolio is about 1 year with a yield of about 12% on the fixed rate book.
The bank’s cost to income ratio for 2QCY26 stood at 56.5% compared to 54.7% in 2QCY25. Management highlighted that growth in costs was only 6% YoY in 1HCY26 and that this rise in cost to income is due to a slowdown in revenue growth. Capital Adequacy Ratio stood at 17.2% at end Jun-26, down from 18.3% at the end of CY25. Moving forward, the management believes that the policy rate is likely to remain at this level until the middle east conflict is resolved. Additionally, further rise in oil prices could lead to more rate hikes. Management is confident of preserving profitability in this environment.
Important Disclosures
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