Habib Bank Limited (HBL) has posted a profit of Rs15.1 billion (EPS Rs10.3) which up 13%YoY.
It announced 4QCY25 results on Wednesday wherein the bank posted an unconsolidated net earnings of Rs15.1bn (EPS Rs10.3) up 13%YoY.
The incline in earnings is primarily driven by higher net interest income and a reversal of provisioning during the quarter.
The bank announced a cash dividend of Rs6/share in 4QCY25 bringing cumulative dividend payout during CY25 to Rs20 per share.
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HBL’s net interest income rise to Rs61.6bn, reflecting 16%YoY increase. Non-interest income fell sharply to Rs13.7bn, marking a 57%YoY decline, primarily driven by a significant reduction in derivative income and other income.
The Banks’s non-interest expenses decline to Rs42.3bn during 4QCY25, down 7%YoY. Moreover, the Bank records a net reversal of Rs1bn in 4QCY25 compared to a net provisioning charge of Rs7.2bn in 4QCY24, providing boost to profitability.
The effective tax rate for the 4QCY25 recorded at 56%, compared to 58% (down 2pptYoY), during the same period last year.
During CY25, HBL reports net earnings of Rs62.4bn (EPS: Rs42.6), compared to Rs56.7bn (EPS: Rs38.7) in CY24, reflecting a 10%YoY increase. Non-interest income declines to Rs71bn, down 16%YoY. However, the provisioning charge falls sharply to Rs2.9bn in CY25, compared to Rs20.9bn in CY24, an 86%YoY reduction, which supports net earnings and partially offsets the impact of lower non-interest income.
On the balance sheet, the Bank’s deposits reached Rs5.5tn, up 27%YoY, the highest in the industry. Advances stood at Rs2tn, down 15%YoY, while investments surged to Rs4.1tn, marking a 65%YoY increase.
