Bank al Habib Limited (BAHL) reported Consolidated earnings per share of PKR 29.19 for CY25, compared to PKR 37.70 in CY24. Furthermore, in 4QCY25, the company reported earnings per share of PKR 5.20, compared to earnings per share of PKR 6.75 in the same period last year (SPLY).
Total assets grew to PKR 3.3 trillion. Total deposits reached PKR 2.6 trillion, while investments stood at PKR 2.0 trillion.
The Non-Performing Loan ratio stands at 4.26%, which management described as stable despite pressures in the steel and textile sectors. Major NPL exposures have been either collateralized or restructured.
Current accounts constitute 36% of total deposits. When combined with savings, the overall CASA mix stands at approximately 89%
Management is targeting a deposit growth rate of 16% to 17% for CY26.
Approximately 85% of the investment book consists of floating rate instruments, primarily comprising floating PIBs and Sukuks. Fixed rate exposure remains limited, with fixed PIBs accounting for only 10% of the portfolio, with average yields of around 12% to 13%.
Following a rapid expansion in 2025 (112 new branches), the bank is now shifting toward consolidation. For 2026, it plans to open only 33 new branches. Islamic banking now accounts for 30% of the total branch network (392 branches as of year-end). The bank is actively converting conventional branches into Islamic ones.
The cost to income ratio remains elevated at around 60% due to recent aggressive branch expansion and remittance marketing costs. Management expects this to improve as expansion slows and consolidation takes effect. BAHL maintains a 12% market share in foreign trade, handling USD 6.1 billion in imports and USD 4.9 billion in exports. The bank processed USD 2.9 billion in remittances during CY25.
Management commented that recent treasury auctions reflect market expectations regarding interest rates. They expect net interest margins to improve as investments reprice and deposits grow.
Regarding the new SBP market risk guidelines, management indicated there may be some impact on the surplus, however, the current CAR of 17.01% provides a comfortable buffer.
Important Disclosures
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