Karachi: Habib Bank Limited (HBL) held a corporate briefing session where it revealed a robust increase in deposits and a stable financial outlook for the upcoming year. The bank reported a 16% growth in total deposits reaching Rs5.1 trillion in the first nine months of 2025, with a notable rise in Current Accounts by 24%, amounting to Rs1.94 trillion as of September 2025.

The bank’s management shared that the Net Interest Income saw an 11% year-on-year increase, driven by growth in current accounts and efficient cost management. The investment portfolio stood at Rs4.0 trillion, primarily comprising Floater PIBs, Fixed PIBs, T-bills, and other securities. Despite acknowledging repricing pressures, HBL expressed confidence in its investment strategy, citing favorable market spreads.

HBL disclosed a decline in domestic advances to Rs1.434 trillion by September 2025, although its international loan portfolio saw an increase. The average yield on advances was reported at 13%. The bank's Cost-to-Income Ratio improved to 55.3% at the group level, with infection and coverage ratios indicating healthier asset quality.

The management projected stable interest rates in the short term and a gradual currency movement, with no major shifts anticipated. HBL’s Capital Adequacy Ratio remains strong at 18.3%, exceeding regulatory requirements.

The bank announced consolidated earnings of Rs16.9 billion for the third quarter of 2025, a 17% increase, bringing total earnings for the first nine months to Rs51.4 billion. A dividend of Rs5.0 per share was declared, surpassing expectations and bringing the total for the period to Rs14.0 per share. HBL remains a strong buy recommendation, with favorable trading metrics and dividend yield prospects.