KARACHI: Habib Bank Limited (HBL) reported consolidated earnings of Rs16.1 billion for the first quarter of 2026.
This translates into earnings per share (EPS) of Rs11, down 3.0 per cent year-on-year (YoY) but up 5.0 per cent quarter-on-quarter (QoQ), in line with market expectations, according to Topline Research.
Net interest income rose 4.0 per cent YoY and 5.0 per cent QoQ to Rs71 billion, supported by volumetric growth. The bank’s investment book expanded to Rs4.8 trillion in March 2026 from Rs4.2 trillion in December 2025.
Non-interest income declined 5.0 per cent YoY to Rs20.5 billion due to lower capital gains. However, it increased 13 per cent on a quarterly basis, driven by higher dividend income of Rs3.6 billion compared to Rs0.6 billion in the previous quarter.
Non-interest expenses rose 6.0 per cent YoY and 10 per cent QoQ to Rs53.8 billion.The effective tax rate stood at 52.1 per cent, lower than 54.6 per cent in 1Q2025 and 57.1 per cent in 4Q2025.
Provisioning expenses surged to Rs4.3 billion, up 58 per cent YoY and 231 per cent QoQ.Alongside the results, the bank announced a cash dividend of Rs6 per share, exceeding expectations of Rs5 per share.
On the balance sheet side, deposits increased 21 per cent YoY but declined 3.0 per cent QoQ to Rs5.3 trillion in March 2026. Borrowings rose to Rs1.8 trillion from Rs1.2 trillion in December 2025.The bank’s investment surplus declined sharply to Rs10.6 billion in March 2026 from Rs47.4 billion in December 2025.
