Karachi: HBL has announced a record profit before tax of Rs 120.3 billion for the year ended December 31, 2024, reflecting a 6% increase compared to 2023. The bank’s profit after tax stood at Rs 57.8 billion despite a substantial increase in the tax rate on banks to 54%. The earnings per share (EPS) for 2024 were recorded at Rs 39.85, up from Rs 39.32 in the previous year.
HBL also declared a final cash dividend of Rs 4.25 per share (42.5%) for the year, in addition to interim dividends amounting to Rs 12 per share (120%) already paid.
Strong Balance Sheet and Lending Growth
HBL’s balance sheet expanded by 9%, reaching Rs 6.1 trillion. The bank’s total deposits increased by Rs 228 billion to Rs 4.4 trillion, with domestic deposits growing by Rs 187 billion to Rs 3.6 trillion. The CASA ratio showed a strong improvement, reaching nearly 90%.
The bank’s total advances grew by over 30% to Rs 2.4 trillion, with the domestic lending book surpassing Rs 2.0 trillion. HBL’s flagship consumer portfolio continued its growth trajectory, reaching Rs 143 billion, while agriculture financing crossed Rs 100 billion.
Resilient Financial Performance Amid Monetary Easing
Despite a 900 basis points drop in the State Bank of Pakistan’s policy rate over the year, HBL’s net interest income rose to Rs 246 billion. This growth was driven by a 17% expansion in the average domestic balance sheet and improved spreads in international business. Non-fund income saw an impressive 68% increase to Rs 96.5 billion, largely due to strong contributions from Treasury operations.
HBL’s fee income grew by 17% to Rs 49.5 billion, with significant contributions from cards, Bancassurance, and retail banking. As a result, the bank’s total revenue rose by 14% to an industry-leading Rs 342 billion.
A strategic focus on cost optimization helped contain administrative expense growth to 13%, improving the cost-to-income ratio to 56.3%. Non-performing loans slightly increased, but the infection ratio remained at a record low of 4.3%. HBL’s sustained profitability led to a rise in its Capital Adequacy Ratio, which improved from 16.0% in December 2023 to 17.7% in December 2024, well above regulatory requirements.
CEO’s Statement on HBL’s Performance
Commenting on the results, Muhammad Nassir Salim, President & CEO of HBL, stated, “HBL continues to deliver value for its stakeholders while navigating an increasingly complex external environment. The strong financial results for 2024 validate the bank’s strategic direction. We take pride in serving our valued clients and contributing to Pakistan’s economic development.”
HBL’s Commitment to Agriculture and SME Sectors
HBL remains committed to Pakistan’s agricultural sector and national food security. In 2024, the bank launched HBL Zarai Services Limited, a wholly-owned subsidiary aimed at transforming the agricultural value chain. Through Zarai Deras in Burewalla, Sahiwal, Pakpattan, and Sadoke, HBL is providing farmers with agronomy services, crop inputs, and modern mechanization tools.
As the largest lender in government-backed agriculture financing programs, HBL supports initiatives such as solar tube wells, tractors, and livestock, with a total portfolio exceeding Rs 100 billion. The bank holds the largest market share in both commercial and microfinance agriculture lending in Pakistan.
HBL is also focused on expanding its SME lending portfolio. With the highest industry portfolio in cash flow-based SME lending, the bank is enhancing financial access for small businesses. In recognition of these efforts, HBL was named The Best SME Bank at the Pakistan Banking Awards.
Leadership in Green Financing and Industry Recognition
HBL has played a key role in supporting the State Bank of Pakistan and the World Bank in developing the National Green Taxonomy, identifying new green financing opportunities to combat climate change.
The bank’s leadership and performance have been widely recognized in 2024:
- Pakistan’s Best Bank, Pakistan’s Best Bank for Corporates, and Pakistan’s Best Bank for ESG by Euromoney Awards for Excellence.
- Best Conventional Bank of the Year Excellence Award by FPCCI.
- Best Board of the Year by the Pakistan Institute of Corporate Governance (PICG).
With a strong financial foundation and strategic growth initiatives, HBL continues to be a leading force in Pakistan’s banking sector, driving economic progress and innovation.
