Habib Bank Limited (HBL) posted a broadly stable financial performance during the first half of 2026. The bank’s consolidated profit after taxation rose marginally by 0.26% year over year to Rs34.54 billion. The lender reported profit after taxation of Rs34.45 billion during the same period last year. Meanwhile, earnings per share increased slightly to Rs23.51 from Rs23.44 in the corresponding period.
HBL Announces Rs6 Dividend
HBL’s Board of Directors announced an interim cash dividend of Rs6 per share for the six months ended June 30, 2026. The payout represents 60% of the bank’s share value.
The latest dividend comes in addition to the Rs6 per share interim dividend already paid. Consequently, HBL’s total cash dividend for the first half reached Rs12 per share.
Total income also recorded modest growth during the period. It increased 3% year over year to Rs186.91 billion from Rs181.92 billion.
Higher Interest Costs Limit Banking Income
HBL’s core banking income showed mixed trends during the first half. Mark-up, return, profit and interest earned increased 15% to Rs373.62 billion.
However, interest expenses grew faster during the period. The figure climbed 26% to Rs233.33 billion, limiting growth in net mark-up income.
As a result, net mark-up and interest income increased only 2% to Rs140.29 billion. The corresponding figure stood at Rs137.64 billion last year.
Non-markup income delivered stronger results in several areas. Fee and commission income rose 16% to Rs25.81 billion, while foreign exchange income surged 84% to Rs7.56 billion.
Dividend income also nearly tripled to Rs4.82 billion from Rs1.76 billion. However, net gains on securities fell sharply by 67% to Rs3.13 billion.
Other income also declined 61% to Rs906.05 million. Despite these setbacks, total non-markup income increased 5% to Rs46.62 billion.
Rising Expenses Pressure HBL Earnings
Operating expenses climbed 6% to Rs106.87 billion during the period. Other charges also increased 60% to Rs179.43 million.
Overall, non-markup expenses rose 6% to Rs108.49 billion from Rs101.94 billion. Consequently, profit before credit loss allowance and taxation declined 2% to Rs78.43 billion.
Credit loss allowances and write-offs also increased 15% to Rs5.33 billion. The higher expense contributed to a 3% decline in profit before taxation.
Lower Tax Bill Supports HBL Profit
Profit before taxation fell to Rs73.10 billion from Rs75.35 billion. However, a lower tax burden helped protect the bank’s final earnings. HBL’s taxation declined 6% to Rs38.56 billion from Rs40.90 billion. This reduction offset much of the pressure from weaker pre-tax earnings. As a result, the bank managed to keep its bottom line almost unchanged. HBL ultimately delivered a marginal increase in first-half profit while maintaining a Rs12 per share total dividend.
