Karachi: Bank Al-Habib Ltd. (BAHL) has reported a significant improvement in its financial performance for the first quarter of the calendar year 2026, driven by an increase in net interest income (NII). The bank's net profit after tax (NPAT) reached PKR 7.1 billion, marking a 35% increase from the previous quarter, although it was 31% lower than the same period last year.
According to AKD Securities Limited, the bank's earnings exceeded expectations due to stronger-than-anticipated net interest income. The NII for the quarter stood at PKR 32.6 billion, which, despite a 3% year-on-year decline, showed a 4% increase on a sequential basis. This growth was attributed to an 8% quarter-on-quarter rise in mark-up earned, bolstered by a 5% increase in average investments funded by an 8% growth in deposits.
Bank Al-Habib also announced an interim cash payout of PKR 3.5 per share, aligning with market expectations. The bank's deposits saw a substantial increase, rising by 17% from the previous year and 8% from the last quarter, reaching PKR 2.8 trillion as of March 2026. Investments also grew, showing a 13% year-on-year and 10% quarter-on-quarter increase to PKR 2.3 trillion.
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