Karachi: Habib Bank Limited (HBL) reported its financial results for the fourth quarter of the calendar year 2025, announcing a net profit after tax (NPAT) of PKR 15.4 billion, translating to earnings per share (EPS) of PKR 10.5. The results indicate a year-on-year decline of 5% and a quarter-on-quarter drop of 9%. Despite the decrease in profits, HBL declared its highest ever quarterly payout, with a cash dividend of PKR 6.0 per share, bringing the total cash payout for the year to PKR 20.0 per share.
According to AKD Securities Limited, the bank's net interest income (NII) for the fourth quarter was PKR 68.2 billion, marking a 13% increase from the previous year though a 2% decline from the previous quarter. This was primarily due to a larger average investment book, which helped counterbalance the reduction in yields. The bank's deposit base, a leader in the industry, grew significantly by 27% year-on-year and 9% quarter-on-quarter, reaching PKR 5.5 trillion as of December 2025.
The report further detailed that the mark-up earned by HBL stood at PKR 177.9 billion, reflecting a 5% year-on-year and 1% quarter-on-quarter decline. The mark-up expensed was recorded at PKR 109.7 billion, which was 14% lower than the previous year and unchanged from the previous quarter. The bank's net interest margins (NIMs) were estimated to have decreased to 4.3% in the fourth quarter of 2025, compared to 4.7% in the same period last year and 4.4% in the third quarter of 2025.
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