Karachi: First Habib Modaraba, a prominent player in the Pakistani financial sector, released its annual report for the fiscal year 2026, showcasing a substantial growth in its liabilities obtained through Islamic modes of financing. The report, dated October 16, 2026, reveals considerable changes in the financial landscape of the institution, reflecting its increased reliance on Shariah-compliant financial products.
The financial statement highlights that current liabilities from certificates of investment (Musharaka) rose to 22.26 billion rupees from the previous year's 20.77 billion rupees, marking a very large or significant move of 7.16%. Running Musharaka liabilities experienced an even more pronounced increase of 73.61%, climbing to 10.93 billion rupees from 6.30 billion rupees. This surge underscores the institution's strategic shift towards Islamic financing modes.
In terms of asset management, the report indicates a decline in long-term Shariah-compliant investments, which decreased to 179.48 million rupees, a very large or significant move of -59.81% compared to the previous year's 446.58 million rupees. Short-term Shariah-compliant investments also saw a reduction to 273.78 million rupees from 312.27 million rupees, a minor move of -12.31%.
Profitability from Shariah-compliant ventures remains robust. The income from diminishing Musharaka financing slightly decreased to 4.85 billion rupees from 4.97 billion rupees, a minor move of -2.44%, indicating stability in this income stream. Dividend income from Shariah-compliant investments fell to 32.12 million rupees from 39.70 million rupees, a moderate move of -19.09%.
According to information available from the Pakistan Stock Exchange (PSX), the financial performance of First Habib Modaraba reflects broader market trends in the designated market category of Islamic Finance. Despite fluctuations in asset values and income from investments, the institution maintains a firm commitment to Shariah-compliant practices.
Shariah-compliant bank deposits and balances dropped to 577.86 million rupees from 815.31 million rupees, indicating a significant move of -29.13%. The profit earned from these deposits also saw a decrease, amounting to 83.14 million rupees, down from 95.77 million rupees, a moderate move of -13.16%.
The report also notes financial and other charges associated with Islamic modes of financing, which slightly increased to 3.35 billion rupees from 3.32 billion rupees, a minor move of 0.84%. Miscellaneous income witnessed a notable rise to 76.46 million rupees from 39.69 million rupees, a very large or significant move of 92.67%.
First Habib Modaraba's annual report for 2026 underscores the institution's strategic focus on expanding its Shariah-compliant financing, amid a shifting financial landscape that favors Islamic financial products.