Habib Bank Limited (HBL) reported robust financial results for the year ended December 31, 2025, posting a profit after tax (PAT) of Rs66.76 billion, representing a 15.5% increase compared to Rs57.80 billion in 2024. Earnings per share (EPS) also rose by 14.13%, reaching Rs45.48, up from Rs39.85 in the previous year. The bank’s board declared a final cash dividend of Rs6.00 per share, adding to the interim dividend of Rs14.00 per share already distributed, bringing total dividends for 2025 to Rs20.00 per share or 200%.
The growth in profitability came despite a challenging interest rate environment where mark-up/return/profit/interest earned declined 16.22% year-on-year to Rs681.26 billion, reflecting lower interest rates and compressed asset yields. However, funding costs fell more sharply by 28.51% to Rs405.76 billion, driven by reduced mark-up expenses on the bank’s deposit base. This dynamic resulted in a 12.16% rise in net mark-up/interest income to Rs275.50 billion, highlighting HBL’s ability to expand spreads amid declining rates.
Non-mark-up income declined 11.30% to Rs85.61 billion, with fee and commission income falling by 5.35% to Rs46.88 billion. Dividend income grew by 14.54% to Rs3.53 billion, while foreign exchange income increased 12.89% to Rs8.91 billion. The bank’s share of profit from associates surged 36.83% to Rs6.52 billion. Income from derivatives dropped sharply by 52.69% to Rs2.73 billion, although gains on securities rose 30.23% to Rs13.63 billion. Other income declined steeply by 77.26%, mainly affecting the overall non-mark-up income performance.
On the expense side, total non-mark-up expenses rose 4.46% to Rs203.89 billion, led by a 4.27% increase in operating expenses to Rs200.70 billion amid ongoing business expansion and inflationary pressures. Workers’ Welfare Fund payments surged 20.70% to Rs2.85 billion, while other charges showed a slight decline.
HBL’s profit before credit loss allowance and taxation increased 6.99% to Rs157.21 billion. The bank saw a marked improvement in asset quality, with net credit loss allowances and write-offs dropping 65.71% to Rs9.12 billion from Rs26.60 billion the previous year. This reduction in provisioning significantly boosted profit before tax, which climbed 23.07% to Rs148.09 billion. Taxation expenses increased 30.06% to Rs81.33 billion, resulting in the reported PAT of Rs66.76 billion.
Deposits at Habib Bank reached an all-time high of Rs5.5 trillion in the fourth quarter of 2025, underscoring strong growth in its deposit base and reinforcing the bank’s funding strength during a shifting interest rate landscape.
The bank’s ability to deliver strong earnings growth despite declining interest income highlights efficient cost management and improved asset quality. Its performance reflects resilience amid evolving market conditions and reinforces its position as one of Pakistan’s leading financial institutions.
HBL’s 2025 results demonstrate a successful balance of growth, prudent risk management, and shareholder returns. The bank’s sustained deposit expansion and disciplined approach to provisioning set a positive outlook for continued financial stability and profitability in the coming years.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.