Habib Bank Limited (HBL) has announced a consolidated profit before tax of Rs 75.3 billion for the half-year ended June 30, 2025, marking a 30% year-on-year growth. This performance underlines HBL’s continued focus on operational excellence and its expanding role in supporting inclusive and sustainable financial services across Pakistan.
Despite a 4% increase in the effective tax rate, the bank’s profit after tax grew by 19% year-on-year, reaching Rs 34.4 billion. Earnings per share (EPS) rose to Rs 23.44 compared to Rs 20.18 in the same period last year. The board declared a second interim cash dividend of Rs 4.50 per share (45%), in addition to the same amount paid earlier this year.
HBL’s balance sheet expanded significantly, growing by 26% to Rs 7.6 trillion. Total deposits crossed a milestone of Rs 5.2 trillion, making HBL the first Pakistani bank to surpass this threshold. Domestic deposits climbed 22% to Rs 4.4 trillion, led by strong current account growth of Rs 440 billion. The bank also maintained a robust CASA (current and savings account) ratio of 89%, with current accounts comprising over 40% of total deposits.
In terms of lending, HBL’s total loan book neared Rs 2.0 trillion, supported by growth in its consumer lending portfolio, which reached Rs 156 billion. The bank’s net interest income increased by 12% to Rs 138 billion, aided by improved deposit mix and balance sheet expansion. Non-fund income also saw 12% growth, driven by treasury operations, bancassurance, investment banking, and consumer finance. Overall revenue rose to Rs 182 billion for the period.
Despite macroeconomic headwinds, the bank contained operating expenses, limiting year-on-year growth to 8%. The cost-to-income ratio improved to 55.2%, showing over 200 basis points improvement. Non-performing loans decreased, and the infection ratio dropped to 5%, with specific coverage improving to 90% and overall coverage exceeding 100%. Capital adequacy ratios remained strong, with Tier 1 CAR at 14.16% and Total CAR at 17.91%.
Muhammad Nassir Salim, President and CEO of HBL, emphasized the bank’s commitment to delivering long-term stakeholder value through innovation, inclusion, and growth. He noted that HBL remains optimistic about the national economic outlook and is strategically aligned to accelerate its topline growth initiatives.
HBL has also deepened its impact on agriculture and women-led enterprises. Through initiatives like the Area Yield Index Insurance program, it disbursed over Rs 10 million to farmers in Sindh and Balochistan. The bank’s ‘Agahi’ platform has reached more than 30,000 farmers since 2018, offering training in modern agronomic practices and financing options.
The bank continues to champion gender-inclusive financing through its support of the Women Entrepreneurs (WE) Finance Code. Since 2024, HBL has extended Rs 2.6 billion in loans to more than 450 women-led businesses. In total, HBL Group now serves over 5 million women clients, the largest among commercial banks in Pakistan.
Internationally, HBL participated in the London Climate Action Week and launched a $75 million Climate Resilience Facility with British International Investment. In parallel, HBL Microfinance Bank secured $80 million from IFC under the GAFSP to promote climate-smart agriculture financing.
On the technology front, HBL embraced AI to launch FanTunes during HBL PSL, allowing fans to generate custom anthems using AI tools. The initiative saw over 25,000 user-generated videos and marked a new era of interactive banking experiences.
Recognizing its innovation and leadership, HBL secured 22 awards in H1 2025, including “Best Bank in Pakistan,” “Best Investment Bank,” and “Best Mobile App,” solidifying its position as a frontrunner in modern banking in Pakistan.