KARACHI: Habib Bank Limited (HBL) announced its second quarter 2026 results on Tuesday, reporting its highest-ever quarterly consolidated profit of Rs18.3 billion, translating into earnings per share (EPS) of Rs12.5, up 3 per cent year-on-year and 14 per cent quarter-on-quarter.
Alongside the results, the bank announced a dividend of Rs6 per share, in line with expectations, bringing the first-half payout to Rs12 per share.According to a report by Topline Securities, the result came in line with analyst expectations. This takes their first-half 2026 earnings to Rs34.5 billion, or an EPS of Rs23.5, flat on a year-on-year basis.
Net Interest Income (NII) remained flat year-on-year but declined by 3 per cent quarter-on-quarter to Rs69 billion, mainly due to a hike in the policy rate.On the balance sheet side, the bank’s deposits increased by 14 per cent year-on-year and 10 per cent quarter-on-quarter to Rs5.9 trillion in June 2026, while borrowings decreased to Rs1.1 trillion from Rs1.8 trillion in March 2026.
Non-interest income rose by 15 per cent year-on-year and 27 per cent quarter-on-quarter to Rs26 billion, driven by higher foreign exchange income alongside 23 per cent year-on-year and 5 per cent quarter-on-quarter growth in fee and commission income.
The bank also recorded a capital gain of Rs2.8 billion in the second quarter, compared with Rs0.3 billion in the first quarter, while its revaluation surplus reached Rs72 billion in June 2026, up 35 per cent quarter-on-quarter.
Non-interest expenses increased by 7 per cent year-on-year and 2 per cent quarter-on-quarter, taking the cost-to-income ratio to 57.5 per cent in the second quarter, compared with 58.6 per cent in the first quarter and 55.7 per cent in the same period last year.
The effective tax rate came in at 53.3 per cent for the quarter, against 54.0 per cent a year earlier and 52.1 per cent in the first quarter, taking the first-half tax rate to 53.9 per cent compared with 54.3 per cent in the same period last year.
