Karachi: Habib Bank Limited (HBL) announced robust financial results for the first half of 2026, highlighting resilience amidst a challenging economic landscape. The bank's consolidated profit before tax reached Rs 73.1 billion, a slight decline from Rs 75.3 billion in the same period last year, while profit after tax rose to Rs 34.5 billion due to a 1% tax rate reduction.

On August 10, 2026, the directors presented the consolidated financial statements for the half year ending June 30, 2026. The report comes amid a macroeconomic backdrop where Pakistan's GDP growth increased to 3.7% in FY 26, driven primarily by a 6.1% rebound in the Large-Scale Manufacturing Index. The agriculture sector showed a notable 2.9% growth despite adverse weather conditions in 2025.

According to information available from the Pakistan Stock Exchange (PSX), the equity market demonstrated resilience, with the KSE-100 index posting a 44% annual gain for FY 26, marking the third consecutive year of double-digit growth. However, the index saw a modest 2% increase since December 2025, as geopolitical tensions began to impact market dynamics.

HBL's financial performance reflected strategic positioning in the market, with the balance sheet expanding by 4% to Rs 8.0 trillion. Domestic deposits reached a record Rs 5.1 trillion, driven by current account deposits surpassing Rs 2 trillion. The bank's loan book grew to Rs 2.1 trillion, with significant contributions from the consumer, agriculture, and SME sectors.

The bank maintained a strong capital position, with the Tier 1 Capital Adequacy Ratio (CAR) at 13.7% and a total CAR of 17.2%, both comfortably above regulatory requirements. Despite pressures on spreads, net interest income rose to Rs 140 billion, supported by a favorable funding mix. Non-fund income increased by 5%, primarily due to higher fees and treasury operations.

HBL's directors declared an interim cash dividend of Rs 6 per share for the second quarter, following a similar dividend in the first quarter. The bank's earnings per share improved slightly to Rs 23.51, up from Rs 23.44 in H1 2025.

The financial results underscore HBL's ability to navigate economic challenges, maintaining growth while managing costs effectively. The bank continues to focus on supporting economic activity across key sectors, reinforcing its position as a leading financial institution in Pakistan.