Karachi, April 25, 2025 – Habib Bank Limited (HBL) has announced its financial results for the first quarter of calendar year 2025, reporting impressive earnings that surpassed market and industry expectations.
The robust performance was primarily driven by strong growth in core banking operations and a significant gain on securities.
In its 1QCY2025 results, HBL reported consolidated earnings of Rs16.6 billion, translating into an earnings per share (EPS) of Rs11.3. This represents a 9% year-on-year (YoY) increase and a 15% rise quarter-on-quarter (QoQ), reinforcing the bank’s position as one of Pakistan’s leading financial institutions.
Analysts at Topline Securities attributed the higher-than-anticipated earnings to better-than-expected Net Interest Income (NII) and gains on investment securities. During the quarter, HBL’s NII rose to Rs69 billion, showing a growth of 12% YoY and 14% QoQ. This was achieved as interest earned stood at Rs157 billion—down 21% YoY—while interest expenses saw a sharper decline of 36% YoY, settling at Rs88 billion.
Meanwhile, Non-Interest Income rose 7% YoY to Rs21.6 billion. A major contributor was a notable turnaround in the bank’s securities portfolio, which posted a gain of Rs4.17 billion in 1Q2025 compared to a loss of Rs283 million in the same quarter of the previous year.
Non-interest expenses increased by 7% YoY but fell 6% QoQ, which analysts attribute to inflation-related cost pressures. Despite this, HBL’s cost-to-income ratio improved to 56% in 1Q2025, compared to 59% in 1Q2024, indicating better operational efficiency.
Provision expenses were also lower, falling to Rs2.7 billion—down 25% YoY and 64% QoQ. HBL’s effective tax rate for the quarter was 55%, slightly higher than the same period last year but below the previous quarter.
In addition to its strong earnings, HBL announced a first interim cash dividend of Rs4.5 per share for 1Q2025, exceeding market forecasts. Investors are now eagerly awaiting the detailed financial disclosures, particularly regarding the treatment of foreign exchange income and any related windfall tax implications for prior years.
These positive earnings affirm HBL’s resilience in a challenging economic environment and underscore its robust performance in Pakistan’s banking sector.