Bank AL Habib Limited (PSX: BAHL) has received in-principle approval from its Board of Directors to enter into negotiations for the acquisition of an additional 33.33% shareholding in AL Habib Capital Markets (Pvt.) Limited (AHCML), with the proposed transaction aimed at making the brokerage and capital markets company a wholly-owned subsidiary of the bank. The decision was taken during a meeting of the Bank’s Board of Directors held on August 20, 2026, according to a notification disseminated to the Pakistan Stock Exchange. The proposed acquisition remains subject to the completion of negotiations and receipt of the required regulatory and corporate approvals.
Under the proposed arrangement, Bank AL Habib would acquire the remaining 33.33% stake in AHCML, allowing the bank to increase its ownership of the company to 100%. The transaction is intended to bring AHCML fully under the ownership of Bank AL Habib and further align the capital markets company with the bank’s broader financial services operations. The board has, however, only granted in-principle approval to enter negotiations at this stage, meaning the transaction is not yet finalised and remains dependent on the outcome of discussions and the fulfilment of regulatory requirements.
The proposed acquisition will require approval from the State Bank of Pakistan (SBP) as well as other relevant regulatory and corporate authorities. Bank AL Habib will therefore have to complete the required approval process before the acquisition of the additional shareholding can be concluded. The notification to the Pakistan Stock Exchange did not disclose the proposed transaction value or other financial terms of the acquisition, with the immediate decision focused on authorising negotiations for the additional stake.
AL Habib Capital Markets is part of Bank AL Habib’s wider financial services presence, and the proposed move would result in the bank holding the entire share capital of AHCML if the transaction is completed. Full ownership could provide Bank AL Habib with direct control over the capital markets business while consolidating its position across banking and related financial services. The move also comes as financial institutions continue to strengthen their presence across different segments of Pakistan’s financial market.
The board’s decision follows the release of Bank AL Habib’s financial results for the half-year ended June 30, 2026. The bank reported a 22.1% year-on-year decline in consolidated profit after taxation during the period, with net profit falling to Rs15.41 billion from Rs19.79 billion in the corresponding period of 2025. The bank also announced an interim cash dividend of Rs3.50 per share alongside its financial results.
Bank AL Habib’s financial performance during the first half of 2026 reflected pressure on core banking income and higher operating costs, although stronger non-mark-up income provided some support. Net mark-up income declined 2.1% year-on-year to Rs65.10 billion, while total non-mark-up income increased 20.1% to Rs19.95 billion. Foreign exchange income recorded particularly strong growth, increasing 80% to Rs6.40 billion, while the bank’s share of profit from associates more than doubled to Rs902.93 million.
The proposed acquisition of the additional AHCML stake is separate from the bank’s reported half-year financial performance but comes at a time when Bank AL Habib is continuing to manage its broader financial services operations. If the transaction receives the necessary approvals and negotiations are successfully concluded, AHCML would become a wholly-owned subsidiary of Bank AL Habib.
For now, the board approval only allows the bank to proceed with negotiations for the additional 33.33% shareholding. The final completion of the transaction will depend on the outcome of negotiations, approval from the SBP and other regulatory and corporate authorities, as well as fulfilment of the applicable requirements. The bank has communicated the decision to the Pakistan Stock Exchange as part of its regulatory disclosure obligations.
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