Karachi: Habib Bank Limited (HBL) announced a 16% increase in net profit after tax for the third quarter of calendar year 2026, attributed largely to asset growth and a reversal of prior expense provisions. The bank reported a profit of PKR 19.6 billion, translating to earnings per share of PKR 13.3. This performance aligns with the expectations set by financial analysts. Additionally, HBL declared a cash dividend of PKR 6.0 per share, raising its total payout for the first nine months of 2026 to PKR 18.0 per share.

According to AKD Securities Limited, the bank's net interest income grew by 1% compared to the same period last year and by 2% quarter-over-quarter, reaching PKR 70.1 billion. This was driven by an increase in earning assets. HBL's investments rose by 35% year-over-year to PKR 5.4 trillion as of the end of September 2026, primarily funded by a significant growth in borrowings, which increased by 61% year-over-year to PKR 2.0 trillion. The bank's deposit base also increased by 16% year-over-year, remaining flat compared to the previous quarter, totaling PKR 5.9 trillion.

AKD Securities Limited maintains its 'BUY' recommendation for HBL, with a target price of PKR 483 per share by December 2026. The recommendation is based on the bank's ongoing expansion of its low-cost deposit base, improvements in transaction channels through a focus on technology, and enhancements in asset quality.