Habib Bank Limited (PSX: HBL), Pakistan’s largest private bank, published its results for the three and nine months to 30 September 2026 on 22 October 2026. Figures below are for the group (consolidated), as presented in the directors’ report.
The headline: a profit for shareholders of Rs 19.55 bn, or Rs 13.33 a share, for July to September, up 15.7% from Rs 16.91 bn (Rs 11.53) a year earlier. For the nine months, profit after tax rose 5.3% to Rs 54.1 bn (Rs 36.84 a share against Rs 34.97). The board declared an interim cash dividend of Rs 6 a share, taking 2026 dividends to Rs 18 for nine months.
The quarter in numbers
| Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Mark-up / interest earned | 207,938 | 179,852 | +15.6% |
| Mark-up / interest expensed | (137,797) | (110,167) | +25.1% |
| Net interest income | 70,140 | 69,685 | +0.7% |
| Fee and commission income | 13,591 | 11,921 | +14.0% |
| Foreign exchange income | 4,356 | 2,667 | +63.3% |
| Gain on securities | 3,948 | 4,607 | −14.3% |
| Share of profit of associates | 1,933 | 1,531 | +26.3% |
| Dividend, derivatives and other income | 2,218 | 2,536 | −12.6% |
| Total non-interest income | 26,046 | 23,262 | +12.0% |
| Operating expenses and other charges | (55,475) | (52,955) | +4.8% |
| Profit before credit loss allowance | 40,711 | 39,991 | +1.8% |
| Credit loss allowance | 1,238 reversal | (3,182) charge | |
| Profit before tax | 41,948 | 36,809 | +14.0% |
| Tax (effective rate 53.3% against 54.0%) | (22,373) | (19,877) | +12.6% |
| Profit after tax | 19,575 | 16,932 | +15.6% |
| Profit for shareholders | 19,553 | 16,906 | +15.7% |
| Earnings per share, Rs | 13.33 | 11.53 | +15.6% |
What drove the result
Interest income flat despite a bigger balance sheet. Interest earned rose 16% in the quarter but interest paid rose 25%, so net interest income was almost unchanged at Rs 70.1 bn. The bank says average balance sheet volumes grew 11% and that cheaper current account deposits helped offset narrower spreads. For nine months, net interest income was Rs 210 bn, up 1.5%.
Fees and foreign exchange did the lifting. Fee income rose 14% in the quarter and 15% over nine months, which the bank credits to cards, remittances, trade and government payment schemes. Foreign exchange income rose 63% in the quarter. Total non-interest income rose 12% to Rs 26.0 bn.
Costs contained. Expenses rose 4.8% in the quarter and about 6% for nine months, slower than revenue, so the quarter’s cost-to-income ratio was stable at about 58%.
Provisions turned into a release. A Rs 1.24 bn net release in the quarter, against a Rs 3.18 bn charge a year earlier, accounts for most of the 14% rise in pre-tax profit. For nine months the provision charge was Rs 4.1 bn against Rs 7.8 bn.
The balance sheet
- Bigger balance sheet. Total assets grew 16% since December to Rs 8.9 trillion, mainly from investments, which rose to Rs 5.43 trillion from Rs 4.19 trillion.
- Deposits and current accounts. Deposits rose by Rs 348 bn to Rs 5.89 trillion. Current accounts are now 40.2% of deposits, up from 37.6% in December.
- Lending. Advances were Rs 2.16 trillion, up 4% since December, with consumer loans at Rs 199 bn, SME lending at Rs 183 bn and agriculture at Rs 119 bn.
- Asset quality and capital. The infection ratio improved to 4.5%, with coverage above 100%. Tier-1 capital fell to 12.75% and the total capital ratio to 16.1%, mainly because of new Basel III credit risk rules and a smaller surplus on investments; both remain above the minimum.
Valuation snapshot
At the 28 October close of Rs 287.66:
| Measure | Value |
|---|---|
| Group earnings per share, last 12 months (October 2025 to September 2026) | about Rs 47.4 |
| Price to earnings | about 6.1 times |
| Book value per share (group, shareholders’ equity) | about Rs 341, so price to book of about 0.84 |
| Dividends in the last 12 months (Rs 6 final for 2025 and three Rs 6 interims) | Rs 24, a yield of about 8.3% |
| Market value (1.47 billion shares) | about Rs 422 bn |
| Share price, last 52 weeks | low Rs 243.05, high Rs 363.83 |
The share trades below book value and at about 6 times earnings, with a dividend yield above 8%. It is about 21% below its 52-week high.
What to watch next
- Net interest margin. Funding costs rose faster than interest earned in the quarter; whether current account growth keeps offsetting that.
- Provision releases. They lifted this quarter’s profit; a return to charges would cut into it.
- Capital ratios. The new credit risk rules reduced Tier-1 capital by almost a point since June.
- Fee income. Growth of 14 to 15% is helping offset flat interest income.
- Dividends. Rs 6 a quarter so far in 2026, against a total of Rs 20 for 2025.
The bottom line
HBL’s third-quarter profit rose 16% even though net interest income barely moved, thanks to strong fees and foreign exchange income, contained costs and a swing from provision charges to releases. Over nine months, profit is up 5%. The share trades below book value with a yield above 8%, while the main questions are margins and capital under the new rules.
You can follow HBL’s price, Pulse Score, dividend history, results calendar and off-market trades in the Market Pulse Hub dashboard under PSX.
Bilal, Market Pulse Hub
Source: Habib Bank Limited, quarterly report for the nine months ended 30 September 2026 (directors’ report and unaudited condensed interim consolidated financial statements). Earlier quarters from company filings. Prices from the PSX data portal. Twelve-month, per-share and valuation figures are our calculations. This article is for education and information only and is not investment advice.