Karachi: Bank Al-Habib Ltd. (BAHL) has reported a significant 39% year-on-year increase in its net profit after tax (NPAT) for the third quarter of the calendar year 2026, amounting to PkR8.5 billion, with earnings per share (EPS) at PkR7.6. This performance is primarily driven by asset growth and a reversal of provisioning, contributing to an improved financial outcome.

According to AKD Securities Limited, BAHL's balance sheet expansion and unexpected higher provisioning reversal, coupled with a rise in net interest income (NII), were key factors behind the bank's robust financial results. The bank's NII grew by 5% year-on-year and 7% quarter-on-quarter to PkR34.6 billion, attributed to an increase in average earning assets.

The bank also announced a cash payout of PkR3.5 per share for the quarter, raising its total payout for the first nine months of 2026 to PkR10.5 per share. Additionally, BAHL's deposits rose by 19% year-on-year and 3% quarter-on-quarter, reaching PkR3.0 trillion as of September 2026, while investments increased by 31% year-on-year and 7% quarter-on-quarter to PkR2.4 trillion.

AKD Securities Limited maintains a 'BUY' stance on BAHL, with a target price of PkR266.0 per share by December 2026. The positive outlook is supported by the bank's expanding low-cost deposit base, strong asset quality, and growing share in the trade business.