KARACHI, April 26, 2025 — Habib Bank Limited (HBL) has announced a record profit before tax (PBT) of Rs 36.6 billion for the quarter ended March 31, 2025, marking a 22% increase compared to the same period last year. The bank’s profit after tax (PAT) stood at Rs 16.6 billion, up 11% year-on-year despite a 4% higher tax rate on the banking sector. Earnings per share (EPS) rose from Rs 10.37 in Q1 2024 to Rs 11.32 in Q1 2025.
The Board of Directors also declared an interim cash dividend of Rs 4.50 per share (45%) for the first quarter.
Strong Balance Sheet and Deposit Growth
HBL’s balance sheet grew to Rs 5.9 trillion, with total deposits reaching Rs 4.4 trillion. Domestic deposits increased to Rs 3.7 trillion, led by a significant Rs 127 billion growth in current accounts, boosting the CA mix from 37.3% in December 2024 to 40.0% in March 2025.
The lending book closed at Rs 1.9 trillion, with the flagship Consumer business continuing its upward trend, reaching Rs 148 billion despite a seasonal dip in domestic advances.
Resilient Core Income and Operational Efficiency
Despite a 1,000 basis points reduction in the policy rate amid continued monetary easing, HBL’s net interest income (NII) surged 12% to Rs 68.8 billion, driven by a Rs 454 billion increase in the average domestic balance sheet and deposit cost optimization. Non-fund income rose to Rs 21.6 billion, with notable contributions from Treasury operations, branch banking, Bancassurance, and a robust Cards business accounting for over half the fee income.
Total revenue increased to Rs 90.4 billion, while expense growth was contained at 7% through effective cost optimization measures, bringing the cost-to-income ratio down by 200 basis points to 55.6%.
Strengthened Capital Position
The Tier 1 Capital Adequacy Ratio (CAR) improved from 14.27% in December 2024 to 14.51% in March 2025. Total CAR also increased from 17.70% to 17.88%, comfortably above regulatory requirements.
CEO Highlights Strategic Focus
Commenting on the results, Muhammad Nassir Salim, President & CEO of HBL, stated:
“The robust financial performance points to the soundness of our business strategy in a competitive market, while prioritizing client centricity. Our key focus areas—agriculture, SMEs, digital services, and sustainability—continue to play a vital role in our success. We remain dedicated to improving lives, advancing financial inclusion, and promoting sustainable development to ensure the enduring prosperity of Pakistan’s future.”
Driving Innovation and Sustainability
HBL announced a strategic collaboration with Google to launch Google Wallet for its cardholders, enabling secure digital payments through Android and Wear OS devices.
The Bank continued its commitment to SMEs, rolling out SME-centric branches and trade business centers to enhance outreach and focus on this critical segment. On the sustainability front, HBL completed the solarization of 25 high fuel-consuming branches, with over 360 branches and offsite ATMs now powered by solar energy.
Thought Leadership and Community Engagement
HBL partnered with S&P Global to launch the HBL S&P Global PMI® series for Pakistan. This new index will offer valuable monthly insights into the health of the country’s manufacturing sector and promote greater investor transparency.
Celebrating a decade of HBL Pakistan Super League (HBLPSL), the Bank introduced FanTunes—a first-of-its-kind AI-powered platform that allows fans to create personalized PSL songs, aiming to boost youth engagement through technology and sports.
Recognitions and Awards
In recognition of its excellence, HBL received several international awards this quarter, including:
- Best Investment Bank for 2025 – Global Finance
- Best Investment Bank (Domestic) – Finance Asia Awards 2025
- Best Sukuk House – Euromoney Islamic Finance Awards 2024
