Habib Bank Limited (HBL) today reported a consolidated profit before tax of Rs 33.7 billion for the first quarter of 2026, alongside an after-tax profit of Rs 16.2 billion. The financial institution also declared an interim dividend of Rs 6 per share for the quarter, with earnings per share (EPS) standing at Rs 11.0.
The bank’s balance sheet expanded to Rs 8.1 trillion, reflecting robust growth. Domestic deposits concluded the period at Rs 4.6 trillion, contributing to total deposits of Rs 5.4 trillion. HBL prioritised current accounts, resulting in an improvement of the domestic current account mix to 38.6% by March 2026. Total advances surpassed Rs 2.0 trillion.
HBL’s consumer financing portfolio demonstrated continued expansion, reaching Rs 180 billion, while the group’s agriculture lending surpassed Rs 100 billion. These figures highlight the institution”s diverse credit activities.
Despite a reduction in the policy rate, HBL”s interest margins were effectively sustained. This was attributed to a 15% volumetric expansion in the average domestic balance sheet and a decrease in deposit costs, driven by consistent growth in average current accounts.
The bank”s fee-based services significantly bolstered revenue, with its cards business accounting for nearly half of the total fees generated. Cash management and remittances also registered notable increases in fee income. Consequently, HBL’s total revenue for the quarter rose to Rs 92 billion.
Effective cost oversight and management restricted the growth in administrative expenses to a modest 6%. With sustained profitability, HBL”s Tier I Capital Adequacy Ratio (CAR) remained at 13.8%, and its Total CAR stood at 16.7%, both comfortably exceeding regulatory requirements.
Muhammad Nassir Salim, President and CEO of HBL, commented on the bank”s performance, stating that strong business momentum from 2025 persisted in Q1 2026. He noted that HBL unlocked revenue synergies, supported by a lean cost base, which contributed to an improved cost-to-income trajectory and sustainable growth. He also referenced the ongoing Brand Refresh and the HBLPSL partnership as integral to client experience and community engagement.
In its role as a financial market leader, HBL facilitated several key transactions. This included an Interest Rate Swap Agreement with Engro subsidiaries for a notional principal of Rs 20 billion, aimed at client risk management. The bank also acted as the exclusive buy-side financial advisor and arranged Shariah-compliant financing of Rs 75 billion for Maple Leaf Cement Factory Limited’s acquisition of Pioneer Cement Limited. Furthermore, HBL was appointed Inter-Creditor Agent and Mandated Lead Arranger for a project finance facility of up to Rs 76 billion for Frontier Works Organization, supporting critical energy infrastructure development.
HBL Symphony®, the bank’s digital fixed income platform, garnered significant user adoption, with its volumes more than doubling year-on-year. This growth underscores an increasing client preference for digital financial solutions and reinforces the platform’s innovative role in fixed income markets.
Investments in technology and customer experience are proving fruitful, as HBL”s Core Banking System transformation, ENZO, remains on schedule. A total of 92 branches have successfully migrated to this modern platform, which is designed to enhance customer service and strengthen the bank”s adaptability in the evolving digital landscape.
Q1 2026 also saw the phased implementation of HBL”s Brand Refresh. This initiative preserves the established “HBL” wordmark while introducing “Momentum,” a contemporary design element symbolising progress, collaboration, future acceleration, and shared prosperity for both the institution and its clientele. The refreshed identity aims to foster stronger business integration and improve customer experience across various touchpoints.
The bank’s continued sponsorship of the Pakistan Super League (PSL), renewed for HBLPSL 11 (2026) and 12 (2027), underlines its “enabling dreams” philosophy. This partnership reaffirms HBL”s dedication to enhancing the tournament”s success and global standing.
Through the HBL Foundation, the institution continued its philanthropic efforts, allocating Rs 177 million in Q1 2026 to initiatives spanning healthcare, education, and community development across Pakistan. These programmes reached underserved communities nationwide.
Acknowledging its leadership and strong performance, HBL received the ‘Best Investment Bank Award for Pakistan 2026’ from Global Finance.