Karachi, February 18, 2026 – Habib Bank Limited (HBL) announced its 4QCY25 results today, posting consolidated profit after tax (PAT) of PKR 15.4 billion (EPS: PKR 10.5), up 7% year-on-year (YoY) but down 9% quarter-on-quarter (QoQ). This brings HBL’s full-year 2025 profitability to PKR 66.7 billion (EPS: PKR 45.5), marking a 14% YoY increase, the highest recorded level for the bank.
The 4QCY25 performance was broadly in line with expectations, supported by healthy volumetric growth in Net Interest Income (NII). However, lower-than-expected Non-Interest Income (NII) and a higher effective tax rate slightly tempered earnings.
Key Financial Highlights – 4QCY25
| Parameter | 4QCY25 | 4QCY24/3QCY25 | YoY Change | QoQ Change |
| Consolidated PAT | PKR 15.4bn | PKR 14.6bn | +7% | -9% |
| Earnings Per Share (EPS) | PKR 10.5 | PKR 9.8 | +7% | -9% |
| Net Interest Income (NII) | PKR 68.2bn | N/A | +13% | -2% |
| Non-Interest Income | PKR 4.2bn | N/A | -50% | -22% |
| Operating Expenses (OPEX) | PKR 49.0bn | N/A | -9% | -7% |
| Cost-to-Income Ratio | 56.8% | 56.3%/57.0% | +0.5% | -0.2% |
| Provisioning Expense | PKR 1.3bn | PKR 7.5bn | -83% | -59% |
| Effective Tax Rate | 57% | 54% | +3pp | +3pp |
| Deposits | PKR 5.5trn | N/A | +27% | +9% |
| Investments | PKR 4.2trn | N/A | +66% | N/A |
| Advances | PKR 2.1trn | N/A | -15% | N/A |
| Cash Dividend (4QCY25) | PKR 6/share | N/A | N/A | N/A |
| Total CY25 Dividend | PKR 20/share | PKR 16.25/share | +23% | N/A |
Analysis of Results
• Net Interest Income grew 13% YoY, driven by volumetric growth in loans and deposits. Total deposits reached an all-time high of PKR 5.5 trillion, up 27% YoY. Interest income totaled PKR 681 billion (-16% YoY), while interest expense declined 29% YoY, resulting in a strong NII of PKR 275 billion (+12% YoY) for CY25.
• Non-Interest Income fell 50% YoY in 4QCY25 due to a capital loss of PKR 425 million on securities, compared to gains in prior quarters. Fee income declined 5% YoY, while forex and dividend income showed modest gains.
• Operating expenses decreased 9% YoY and 7% QoQ in 4QCY25, keeping the Cost-to-Income ratio at 56.8%, slightly higher than 56.3% in 4QCY24.
• Provisioning expenses fell sharply by 83% YoY to PKR 1.3 billion, contributing to the YoY profitability growth.
• The bank declared a cash dividend of PKR 6/share for 4QCY25, taking the cumulative 2025 dividend to PKR 20/share, up from PKR 16.25/share in 2024.
Outlook
HBL maintains a BUY stance with the stock trading at a 2026E PE of 6.5x and PBV of 0.9x, offering a dividend yield of 7%. Analysts attribute the earnings momentum to strong NII growth, improved deposit base, and lower provisioning, which could sustain the bank’s performance into 2026.