Karachi: Bank AL Habib Limited has reported its financial results for the half year ending June 30, 2026, revealing a notable 22% decline in profit after taxation compared to the corresponding period in the previous year. The bank's Board of Directors approved the unaudited financial statements during a meeting held at the bank's principal office in Karachi on August 20, 2026.

The bank's profit after taxation stood at Rs. 15.09 billion, down from Rs. 19.32 billion in the first half of 2025. This decline in profitability comes despite a slight increase in total income, which rose to Rs. 83.64 billion from Rs. 81.68 billion in the same period last year. The decrease in profit is primarily attributed to a substantial rise in non-mark-up/interest expenses, which increased to Rs. 52.19 billion from Rs. 45.24 billion, representing a significant move in operational costs.

According to information available from the Pakistan Stock Exchange (PSX), Bank AL Habib's financial position at the end of June 2026 showed an increase in total assets, reaching Rs. 3.68 trillion, up from Rs. 3.30 trillion at the end of December 2025. The bank's net assets also saw a rise to Rs. 180.44 billion from Rs. 171.27 billion during the same period.

The bank declared an interim cash dividend of Rs. 3.50 per share, maintaining a 35% payout, consistent with the dividend paid in the previous interim period. However, there were no bonus or right shares announced, and no other entitlements or corporate actions were reported for this period.

The bank's net mark-up/interest income experienced a minor move, decreasing marginally to Rs. 64.96 billion from Rs. 66.33 billion in the first half of 2025. However, non-mark-up/interest income showed a big move, increasing to Rs. 18.68 billion from Rs. 15.34 billion, driven primarily by a significant rise in foreign exchange income.

In terms of liabilities, the bank saw an increase across several categories, with deposits and other accounts rising to Rs. 2.88 trillion from Rs. 2.60 trillion. Borrowings also increased to Rs. 330.24 billion from Rs. 290.26 billion, indicating a continued expansion in the bank's financial activities.

The bank's financial results reveal the challenges posed by increasing operational costs and a competitive banking environment, impacting profitability despite growth in income and assets. The Share Transfer Book of the bank is scheduled to remain closed from September 1 to September 3, 2026, for the entitlement of the dividend to transferees.