Bank Al Habib Profitability Sees Decline in First Half of 2025

Bank Al Habib has posted a decline in profitability for the half-year ended June 30, 2025, as per its latest financial results. The bank reported a Profit After Taxation (PAT) of Rs19.324 billion, falling from Rs21.138 billion in the same period of 2024. The decline in Bank Al Habib profitability reflects pressures from reduced interest income and rising operating expenses.

The bank’s Earnings per Share (EPS) also dropped, coming in at Rs17.39 for the half-year compared to Rs19.02 in the same period last year.

Key Financial Performance Indicators

Breakdown of Performance

• Net Mark-up/Interest Income: Dropped to Rs66.334 billion in June 2025 compared to Rs74.635 billion a year earlier, mainly due to reduced returns on investments and financing.
• Non-Mark-up/Interest Income: Improved to Rs15.341 billion in H1 2025 from Rs14.169 billion last year, driven by better fee and commission-based earnings.
• Non-Mark-up/Interest Expenses: Rose significantly to Rs45.241 billion in H1 2025, up from Rs40.808 billion in 2024, reflecting higher operating costs.
• Taxation: Increased slightly to Rs19.759 billion, up from Rs19.465 billion during the same period last year.

Despite the decline in profitability, Bank Al Habib continues to demonstrate resilience with growth in non-markup income. However, sustained cost pressures and reduced interest income have weighed heavily on its financial performance for the first half of 2025.