Karachi: Habib Bank Limited (HBL) has announced its financial performance for the nine months ending September 30, 2026, revealing a 5% increase in profit after tax to Rs 54.1 billion from Rs 51.5 billion in the same period last year. The bank's consolidated profit before tax rose to Rs 115.0 billion, compared to Rs 112.2 billion in the previous year.
The economic environment in Pakistan has been marked by a GDP growth rate of 3.65% for FY 2026. Large-Scale Manufacturing saw a growth of 5% last fiscal year, further increasing by 2% in the past two months. However, the resurgence of conflict in the Middle East has pushed global commodity prices higher, contributing to inflation, which stood at 10.3% in September 2026. The country's trade deficit widened by 21.1% to $1.6 billion, with imports rising by 14.3% year-on-year.
According to information available from the Pakistan Stock Exchange (PSX), the KSE-100 Index declined by 5.7% in the third quarter of 2026, closing at 170,000 points. This decline is attributed to the geopolitical tensions in the Middle East impacting investor sentiment. Daily trading volumes also saw a decrease of 12% quarter-on-quarter, with a 42% drop in September alone.
Despite these challenges, HBL's balance sheet expanded by 16% over December 2025, reaching Rs 8.9 trillion. The bank's deposits increased to Rs 5.9 trillion, with a significant contribution from current account deposits, which now constitute 40.2% of the total deposit mix. HBL's lending activities also showed growth, with the lending book increasing to Rs 2.2 trillion, supporting sectors such as consumer, agriculture, and small and medium enterprises (SME).
HBL's net interest income rose to Rs 210 billion, supported by a growth in average balance sheet volumes by 11%, and non-fund income increased by 8% to Rs 73 billion. The bank's administrative expenses were kept in check, growing by only 6%, while provision charges were reduced to Rs 4.1 billion.
The bank's Tier-1 Capital Adequacy Ratio decreased to 12.75% due to new Basel III regulations, but both Tier-1 and total CAR of 16.1% remain above regulatory requirements. The Board of Directors declared an interim cash dividend of Rs 6 per share for the third quarter of 2026, bringing the total dividends for the nine months to Rs 18 per share.
HBL's financial results reflect its resilience and strategic focus on growth, even as it navigates a challenging economic landscape characterized by inflationary pressures and geopolitical uncertainties.