Karachi, April 28, 2026 – Habib Bank Limited reported that it paid monetary penalties of Rs13.7 million during the first quarter of calendar year 2026, reflecting a notable increase compared to Rs11.29 million in the same period last year, according to its financial statement released on Tuesday.
The rise in penalties was largely driven by higher fines imposed by the State Bank of Pakistan, which surged to Rs6.51 million in the quarter ended March 31, 2026, up sharply from Rs0.68 million a year earlier. In contrast, penalties from other regulatory bodies declined to Rs7.19 million from Rs10.61 million in the corresponding period, partially offsetting the overall increase.
Despite the regulatory costs, HBL posted resilient financial performance. The bank recorded a consolidated profit before tax of Rs33.7 billion in Q1 2026, compared with Rs36.6 billion a year earlier. Profit after tax stood at Rs16.2 billion, down 3% year-on-year, translating into earnings per share of Rs11.0.
HBL’s balance sheet expanded by 5% to Rs8.1 trillion, supported by steady growth in deposits, which reached Rs5.4 trillion. The bank also improved its domestic current account mix to 38.7% in March 2026, up from 37.6% in December 2025, as part of efforts to optimize its funding base.
The loan book remained above Rs2.0 trillion, underpinned by consistent performance across business segments. The consumer portfolio continued its upward trajectory, with loans rising to Rs180 billion, highlighting sustained demand in retail banking.
Net interest income climbed to Rs71 billion, aided by volumetric growth of around Rs700 billion in the average domestic balance sheet, which helped offset the impact of a lower policy rate. The cost of deposits declined by 116 basis points, supported by growth in current accounts.
Non-fund income remained stable at Rs21 billion, driven primarily by strong fee-based revenue, particularly from the bank’s cards business, remittances, and cash management services. Total revenue for the quarter rose to Rs92 billion.
HBL maintained disciplined cost management, with administrative expenses increasing by a modest 6%. Asset quality also showed improvement, with non-performing loans contained and provision coverage remaining above 100%, signaling a stable risk outlook.