Karachi: Habib Bank Limited (HBL) has reported exceptional financial results for the year ended December 31, 2024, posting a profit before tax (PBT) of Rs120.3 billion, marking a 6% increase compared to 2023. Despite the government’s decision to raise the tax rate on banks to a substantial 54%, HBL’s profit after tax (PAT) reached Rs57.8 billion. Earnings per share (EPS) for 2024 stood at Rs39.85, reflecting a slight increase from Rs39.32 in the previous year.
Alongside the impressive financial performance, HBL declared a final cash dividend of Rs4.25 per share (42.5%), in addition to the interim dividend of Rs12 per share (120%) already paid earlier in the year. This highlights the bank’s strong financial health and commitment to delivering value to its shareholders.
HBL’s balance sheet also saw notable growth, with total assets increasing by 9%, reaching Rs6.1 trillion. Deposits grew by Rs228 billion year-on-year, totaling Rs4.4 trillion by the end of 2024. Domestic deposits played a key role in this growth, rising by Rs187 billion to Rs3.6 trillion, while the bank’s current and savings account (CASA) ratio improved significantly, nearing 90%.
The bank’s total advances surged by more than 30%, reaching Rs2.4 trillion. This growth was driven by a robust performance in HBL’s domestic lending, which crossed the landmark threshold of Rs2 trillion. The consumer portfolio expanded, with HBL’s flagship retail lending reaching Rs143 billion. Furthermore, the bank’s agriculture financing portfolio saw a significant increase, surpassing Rs100 billion, underscoring HBL’s commitment to supporting Pakistan’s agricultural sector.
HBL’s net interest income saw an impressive rise, totaling Rs246 billion in 2024, supported by a 17% growth in the average domestic balance sheet and improved spreads in international markets. Despite the challenges posed by the reduction of 900 basis points in the State Bank of Pakistan’s policy rate during the year, HBL’s strong revenue generation and cost optimization strategies allowed it to maintain profitability. Non-fund income surged by 68%, totaling Rs96.5 billion, primarily driven by HBL’s Treasury business.
The bank’s fee-based income also performed exceptionally well, growing by 17% to Rs49.5 billion. A substantial contribution to this growth came from HBL’s cards business, which accounted for over 50% of the increase, along with strong results from Bancassurance and retail banking. This contributed to a 14% increase in total revenues, which reached Rs342 billion—positioning HBL as an industry leader.
HBL’s disciplined cost management resulted in a controlled growth of administrative expenses, which increased by just 13%. As a result, the bank’s cost-to-income ratio improved to 56.3%, while its capital adequacy ratio increased to a solid 17.7%, reflecting a healthy buffer above the regulatory requirement. Despite a slight uptick in non-performing loans, the bank’s infection ratio remains low at an all-time low of 4.3%, further highlighting HBL’s strong risk management framework.
Muhammad Nassir Salim, President & CEO of HBL, commented on the results, stating, “HBL continues to deliver value for its stakeholders while navigating an increasingly complex external environment. The strong financial results for 2024 reflect the success of the bank’s strategic direction. We are proud to serve our valued clients and contribute to the economic development of Pakistan.”
HBL’s commitment to supporting key sectors such as agriculture and SMEs remains a key driver of its growth. Earlier in the year, the bank launched HBL Zarai Services Limited, a wholly owned subsidiary focused on revolutionizing the agricultural value chain. HBL Zarai aims to enhance farming productivity by providing access to essential services, such as agronomy support, crop inputs, and modern mechanization, thus contributing to the growth of Pakistan’s agricultural sector.
In recognition of its leadership and innovative approach, HBL was awarded several prestigious accolades in 2024, including “Pakistan’s Best Bank” and “Best Bank for ESG” by Euromoney Awards for Excellence. The bank was also recognized as “The Best SME Bank” by the Pakistan Banking Awards and was awarded the “Best Conventional Bank of the Year” by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
These accomplishments reflect HBL’s continued dominance in Pakistan’s banking sector, as it continues to focus on sustainable growth, innovation, and providing value to its customers and shareholders alike.