HBL (Habib Bank Limited), Pakistan’s largest and most forward-thinking financial institution, announced a record-breaking profit before tax of Rs 36.6 billion for the first quarter of 2025, marking an impressive 22% increase compared to the same period last year. Profit after tax reached Rs 16.6 billion, representing an 11% growth, despite a 4% hike in the applicable tax rate for the banking sector. The earnings per share (EPS) rose from Rs 10.37 in Q1’24 to Rs 11.32 in Q1’25. In line with its consistent shareholder value delivery, HBL declared an interim cash dividend of Rs 4.50 per share (45%).
The bank’s balance sheet remains robust at Rs 5.9 trillion, with total deposits closing at Rs 4.4 trillion. Domestic deposits showed strong momentum, increasing to Rs 3.7 trillion, bolstered by a Rs 127 billion surge in current accounts. As a result, the current account mix improved significantly from 37.3% in December 2024 to 40.0% by March 2025. While domestic advances moderated from their year-end high, HBL’s flagship Consumer business continued its upward trajectory, touching Rs 148 billion.
HBL’s net interest income rose by 12% to Rs 68.8 billion, driven by an Rs 454 billion increase in average domestic balances and strategic deposit cost optimization—despite a steep 1,000 basis point reduction in the policy rate. Non-fund income reached Rs 21.6 billion, with major contributions from Treasury operations and double-digit growth in branch banking and Bancassurance. The Cards business alone contributed over half of the total fee income, underscoring the bank’s strength in payment solutions. Total revenue climbed to Rs 90.4 billion for the quarter.
Operational efficiency also showed positive results. HBL’s cost containment initiatives helped limit expense growth to just 7%, improving the cost-to-income ratio by 200 basis points to 55.6% in Q1’25. The Tier 1 Capital Adequacy Ratio (CAR) rose from 14.27% to 14.51%, while the Total CAR improved to 17.88%, comfortably above regulatory requirements.
Muhammad Nassir Salim, President & CEO of HBL, attributed the bank’s stellar performance to a sound strategic focus and a relentless drive toward client-centric banking. “Our commitment to sectors like agriculture, SMEs, digital services, and sustainability is at the heart of our growth,” he stated. “We continue to prioritize financial inclusion and innovation to shape a better future for Pakistan.”
A highlight of HBL’s tech-forward strategy is its collaboration with Google to launch Google Wallet for its cardholders. Users can now add their HBL credit and debit cards to Google Wallet across Android and Wear OS devices—offering secure, seamless digital payments.
Furthering its commitment to SMEs, HBL has established dedicated SME-centric branches and trade business centers to expand its footprint and deliver tailored support to small and medium-sized enterprises across the country.
Sustainability remains integral to HBL’s mission. In Q1, the bank completed the solarization of 25 high fuel-consuming branches, taking the total number of solar-powered branches and offsite ATMs to over 360—demonstrating tangible action against carbon emissions.
As a thought leader in the industry, HBL has launched the HBL S&P Global PMI® (Purchasing Managers’ Index™) series for Pakistan in collaboration with S&P Global. This data tool provides essential monthly insights into the health of the country’s manufacturing sector and is expected to enhance transparency and investor confidence.
Celebrating 10 years of the HBL Pakistan Super League (HBLPSL), the bank introduced FanTunes, an AI-powered fan engagement platform that lets cricket enthusiasts create personalized HBLPSL songs. This first-of-its-kind initiative in Pakistan showcases HBL’s continued commitment to innovation and youth engagement.
HBL’s industry leadership has been recognized globally, earning accolades such as ‘Best Investment Bank for 2025’ from Global Finance, ‘Best Investment Bank (Domestic)’ by Finance Asia Awards, and ‘Best Sukuk House’ from Euromoney Islamic Finance Awards 2024.
With a strong Q1 performance, bold digital moves, and a clear sustainability roadmap, HBL continues to redefine modern banking in Pakistan and beyond.