Karachi: Habib Bank Limited (HBL) showcased significant growth in its financial performance and strategic initiatives during its corporate briefing session, with the management discussing the first quarter results of 2026 and the bank's future plans. The bank highlighted a 21% surge in total deposits to Rs5.4 trillion, driven largely by domestic contributions. Additionally, HBL emphasized its focus on expanding its digital footprint to enhance its market position.

According to JS Global, HBL's deposit growth was notable with current and savings accounts increasing by 19% and 15% year-over-year, respectively. Term deposits saw a substantial increase of 81% year-over-year. The bank's investment portfolio reached Rs4.8 trillion, with the majority invested in Floater PIBs and Fixed PIBs. The yield on the total investment portfolio remained favorable, and the portfolio duration was reported at 0.96.

HBL's advances rose to Rs2.0 trillion, up from Rs1.5 trillion in the previous year, with the international loan portfolio showing a moderate increase. The bank's management expressed confidence in the resilience of its international portfolio amid global economic uncertainties. Consumer lending also saw an uptick, largely driven by personal loans and credit cards.

The bank's cost-to-income ratio increased to 57.8% but management aims to reduce it below 50% through strategic operational measures. HBL's infection ratio improved to 4.9%, and its capital adequacy ratio remained above regulatory requirements at 16.7%. Mobile banking payments saw a significant 35% growth, reflecting the bank's successful digital strategy, with digital transactions accounting for the majority of total transactions.

HBL's earnings for the first quarter were Rs16.1 billion, with a slight year-over-year decline of 3%, and a dividend of Rs6.0 per share was announced. Looking ahead, the bank plans to continue its growth by expanding its deposit base and digital services, focusing on high-value segments such as agriculture and small and medium enterprises. HBL is committed to maintaining its leadership in corporate and commercial banking while scaling the digital economy and home remittances.