Bank declares another Rs6 per share interim cash dividend as earnings remain stable despite lower gains on securities.

KARACHI: Habib Bank Limited (HBL) posted a marginal increase in net profit during the first half of calendar year 2026, supported by higher markup income despite a sharp decline in gains on securities.

According to the consolidated financial statements submitted to the Pakistan Stock Exchange (PSX) on Tuesday, HBL reported a net profit of Rs34.54 billion for the six months ended June 30, 2026, compared with Rs34.45 billion in the corresponding period last year.

The bank’s earnings per share (EPS) improved slightly to Rs23.57, up from Rs23.44 a year earlier.

The Board of Directors, in its meeting held on August 4, 2026, approved an interim cash dividend of Rs6.00 per share for the half-year ended June 30, 2026. The latest payout is in addition to the interim cash dividend of Rs6.00 per share already distributed, taking the total interim dividend for the year to Rs12 per share.

HBL’s markup income rose to Rs140.29 billion during the first half of 2026, compared with Rs137.64 billion in the same period last year, reflecting steady growth in its core banking business.

However, the bank recorded a significant decline in gains on securities, which fell to Rs3.13 billion from Rs9.44 billion in the corresponding period of 2025.

Despite the lower investment gains, total income increased to Rs186.91 billion, compared with Rs181.93 billion a year earlier.

Operating expenses also moved higher during the review period, rising to Rs106.86 billion from Rs100.38 billion, reflecting increased administrative and business costs.

Meanwhile, the bank’s income tax expense declined to Rs38.56 billion, compared with Rs40.90 billion paid during the same period of the previous year.

For the second quarter ended June 30, 2026, HBL reported an after-tax profit of Rs18.37 billion, up from Rs17.82 billion recorded in the corresponding quarter of 2025.

The latest financial results indicate that Pakistan’s largest commercial bank maintained stable profitability in the first half of 2026, supported by resilient core income and disciplined financial management despite pressure from lower investment-related gains.