Habib Bank Limited says statutory and other reserves are sufficient to bridge the capital shortfall as its balance sheet expands to Rs8.9 trillion.

Habib Bank Limited (HBL) will need to bridge a Rs6 billion paid-up capital shortfall following the State Bank of Pakistan’s (SBP) revision of minimum capital requirements for local banks.

During an analyst briefing hosted by Arif Habib Limited, HBL management said the SBP’s new minimum capital requirement of Rs20 billion compares with the bank’s existing paid-up capital of Rs14 billion. However, sufficient statutory and other reserves are available to address the gap.

HBL’s balance sheet expanded to Rs8.9 trillion, while deposits reached Rs5.9 trillion. Profit before tax increased 23% between the first and third quarters of calendar year 2026.

Current account deposits rose 16% year-on-year to Rs236 billion, representing 40% of total deposits. International deposits remained stable at around $2.3 billion.

The consumer financing portfolio reached Rs200 billion, while Islamic financing accounted for approximately 20% of total advances, with its Islamic balance sheet exceeding Rs1.3 trillion.

Asset quality remained comfortable, with an infection ratio of around 4.5% and specific coverage of 85%.

Digital banking throughput increased 36%, with 94.6% of transactions conducted through digital channels. Transaction banking flows reached Rs16 trillion, up 21% year-on-year.

Management also expects the recent 50-basis-point policy rate increase to support net interest income in subsequent quarters.

The bank opened 84 branches during the year, taking its network beyond 2,000, while dividend distributions have increased substantially alongside improving profitability.