Karachi: Habib Bank Limited (HBL) conducted a conference call to discuss its financial performance and strategic outlook. The bank reported significant growth in deposits, a disciplined approach to cost management, and an expansion of its branch network, alongside other key financial highlights.
According to JS Global, the bank's total deposits increased by Rs810 billion year-over-year, reaching Rs5.9 trillion as of September 26. The average domestic current account balances rose by 16%, contributing to a current account mix of 40%. The management emphasized its commitment to strengthening the current and savings account franchise through retail network expansion and customer relationship building, while also maintaining international deposits at approximately US$2.3 billion for funding diversification.
The bank opened 84 new branches in the first nine months of 2026, expanding its network to over 2,000 branches, which includes microfinance and Islamic banking branches. Management expects digital channels to become the primary mode of customer interaction, with physical branches focusing on value-added services.
HBL reported a 5% year-over-year increase in operating expenses despite inflationary pressures, focusing on cost containment to sustain operational efficiency. The bank saw a 76% increase in FX income, contributing to strong non-funded income growth. This diversification of revenue streams is helping the bank manage margin compression and support overall profitability.
In terms of investments, HBL disclosed that 55% of its book is in floating-rate PIBs, with capital gains of Rs7.1 billion realized in the first three quarters of 2026. The bank expects the recent policy rate hike to initially impact net interest income but anticipates recovery as loans and floating-rate PIBs adjust to variable rates.
Regarding regulatory issues, management clarified the separation of an ongoing New York civil case from previous penalty matters and expressed confidence in a favorable outcome. In response to new minimum capital requirements, HBL plans to address a shortfall through statutory reserves.
The bank achieved a record quarterly profit after tax of Rs19.6 billion in the third quarter of 2026, accompanied by a cash dividend announcement of Rs6.0 per share. JS Global maintains a positive outlook on HBL, citing favorable trading metrics and a strategic focus on growth and efficiency.