Karachi: First Habib Modaraba (FHM) has announced its financial results for the year ending June 30, 2025, showcasing substantial growth in various financial metrics. The results were made available through PUCARS and on the Modaraba’s website on September 15, 2025. The financial statements reveal a commendable performance by the Modaraba as the Pakistani economy embarks on a gradual recovery path.
In the fiscal year 2024-25, FHM achieved a net profit of 901.50 million rupees, a notable increase from 690.20 million rupees in the previous year. The Board of Directors has approved a cash dividend of 223%, equivalent to 2.25 rupees per certificate, reflecting a significant return to its certificate holders.
According to information available from the Pakistan Stock Exchange (PSX), FHM's balance sheet expanded by approximately 32%, indicating a very large or significant move. The Modaraba disbursed around 19.60 billion rupees during the year, marking the highest disbursement in its operational history. This expansion aligns with FHM's strategy to diversify its financing portfolio across various sectors of the economy, thereby minimizing concentration risk.
The Board of Directors highlighted their commitment to upholding high standards of corporate governance and ethical conduct. They underscored the importance of a robust internal control framework to ensure risk management and regulatory compliance. The Board conducted an internal performance evaluation, complemented by an external evaluation in 2024 by the Pakistan Institute of Corporate Governance.
In its 40th year of operations, FHM has been recognized with several awards, including the Best Corporate Report Award from ICAP & ICMA and the Corporate Excellence Award from the Management Association of Pakistan. The Modaraba also maintains an AA+ credit rating, the highest within its sector.
FHM’s dedication to Environmental, Social, and Governance (ESG) principles remains a strategic priority. The Modaraba has advanced initiatives in financial inclusion, education, healthcare, and community development, emphasizing corporate social responsibility, environmental stewardship, and social inclusion.
Looking forward, FHM aims to continue its growth trajectory while adapting to changes in the economic environment, such as reductions in the State Bank of Pakistan’s policy rates. The Board expressed confidence in the leadership and management team’s ability to navigate future challenges and capitalize on emerging opportunities, ensuring sustainable growth.
The Board acknowledged the contributions of its team, certificate holders, and regulatory bodies, emphasizing the importance of strong governance, transparency, and accountability in maintaining FHM’s market position within Pakistan's financial sector.