Habib Metropolitan Bank Limited (PSX: HMB) has announced its financial results for the nine months ended September 30, 2025, posting a consolidated profit after tax of Rs17.76 billion. This marks a 9.7% year-on-year decline from Rs19.66 billion recorded during the same period last year. Despite facing inflationary cost pressures and a higher tax burden, the bank managed to maintain stability in its core income while achieving notable growth in non-mark-up revenues.
The bank also declared an interim cash dividend of Rs2.50 per share, equivalent to 25%, in addition to the earlier Rs5.00 per share (50%) already disbursed. This brings the total payout for the year to 75%, reflecting management’s confidence in the bank’s liquidity and balance sheet strength.
HMB’s total income rose 4.5% year-on-year to Rs70.45 billion from Rs67.39 billion, reflecting resilience amid a challenging macroeconomic environment. Net mark-up or interest income remained relatively steady at Rs52.40 billion, showing a marginal increase of 0.24%. The stability in interest income came as a result of a 34% fall in mark-up earned to Rs123.80 billion, offset by a sharper 47% decline in mark-up expensed to Rs71.40 billion, influenced by shifts in the interest rate landscape and funding costs.
Non-mark-up income emerged as the primary growth driver, rising 19.4% to Rs18.05 billion. This improvement was largely fueled by an 83% surge in gains on securities, supported by favorable market valuations and strategic portfolio adjustments. Foreign exchange income also climbed 20%, while fee and commission income recorded a healthy 6.9% increase, indicating growing customer engagement in trade, remittances, and digital banking services. Dividend and other income rose by 14% each, reflecting enhanced diversification in the bank’s revenue mix.
On the expenditure front, operating costs increased 17.8% to Rs29.83 billion compared to Rs25.32 billion last year. The rise was attributed to ongoing inflationary pressures, wage adjustments, and continued investment in digital transformation and branch expansion. Including workers’ welfare contributions and other charges, total non-mark-up expenses rose 17.7% to Rs30.90 billion.
Despite these cost escalations, HMB managed to sustain its pre-tax earnings, with profit before taxation increasing marginally by 0.1% to Rs38.37 billion compared to Rs38.01 billion in the previous year. However, the bank’s bottom line came under pressure due to a 12.4% jump in taxation, which climbed to Rs20.61 billion during the review period.
A notable positive development for the bank was the improvement in asset quality. Credit loss allowances and write-offs dropped 63% to Rs1.17 billion from Rs3.14 billion a year earlier, signaling prudent risk management and stable loan performance. Consequently, profit after tax settled at Rs17.76 billion, with earnings per share recorded at Rs16.44, compared to Rs18.25 in the corresponding period last year.
Habib Metropolitan Bank’s results underscore its steady performance in a volatile operating environment, balancing conservative risk management with diversified income growth. The bank’s continued emphasis on efficiency, digital innovation, and customer-focused services positions it well to navigate economic headwinds and sustain long-term profitability in Pakistan’s evolving financial landscape.
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