Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the ratings of Bank AL Habib Limited (BAHL), citing the bank's strategic focus on sustaining its competitive edge and expanding its market presence in a challenging banking landscape. The ratings underscore BAHL's emphasis on sound governance and prudent risk management under consistent leadership.

BAHL has demonstrated a robust track record of growth, driven by a customer-centric approach that has fostered loyalty and expansion. The bank's strengths in trade finance and foreign remittances have significantly contributed to revenue diversification, enhancing its industry position. Notably, the bank's foreign trade volumes remained strong in CY24, with a renewed emphasis on remittances improving its market share and yielding a positive net contribution in foreign exchange terms.

In the first nine months of CY25, BAHL's deposit base increased to PKR 2.5 trillion from PKR 2.2 trillion in CY24, boosting its market share to 7.00% with a CASA ratio of 90.2%. The bank's advances reached PKR 906.6 billion. Despite stability in non-performing loans, challenges persist due to a few concentrated exposures, though these are well-provided for, and management remains optimistic about recoveries. The bank reported a profit after tax of PKR 25.3 billion, down from PKR 33.1 billion in CY24.

Looking forward, BAHL is expanding its acquisition business and broadening its reach within the financial services sector to meet evolving customer demands. Although sector-wide margin compression is anticipated due to monetary easing, BAHL's strategic clarity and experienced leadership position it to sustain growth and maintain its reputation as a stable institution in Pakistan's banking sector.

The ratings emphasize the importance of BAHL's sustained market positioning and asset quality, with a strong capital adequacy remaining critical.