HBL Profit Rises as Bank Cuts Provisioning Costs

Habib Bank Limited (PSX: HBL) has announced its financial results for the nine months ended September 30, 2025, reporting a profit after tax (PAT) of Rs51.38bn, up 18.78% from Rs43.25bn in the same period last year. The strong performance reflects improved operational efficiency and reduced provisioning expenses.

The HBL profit after tax growth translated into earnings per share (EPS) of Rs34.97, compared to Rs30.03 in the corresponding period. The bank’s Board of Directors approved a third interim cash dividend of Rs5 per share (50%), taking the total payout for the nine months to 140% (Rs14 per share).

The bank’s mark-up/interest earned fell 19.76% to Rs503.40bn due to a declining interest rate environment, while mark-up expensed dropped 32.73% to Rs296.08bn, resulting in net mark-up income of Rs207.33bn, up 10.77% year-on-year.

Non-mark-up income rose 11.25% to Rs67.54bn, driven by strong foreign exchange gains and securities investments. Gains on securities surged 113.98% to Rs14.05bn, while foreign exchange income climbed 21.44% to Rs6.77bn.

Operating expenses increased by 8.38% to Rs152.66bn, mainly due to inflation and digital infrastructure upgrades. However, the reduction in credit loss allowances by 58.95% to Rs7.81bn significantly boosted profitability.

Profit before tax reached Rs112.16bn, up 30.60% from last year, while taxation rose 42.59% to Rs60.78bn.

The HBL profit after tax stood at Rs51.38bn, demonstrating the bank’s ability to maintain growth in a challenging economic environment.