Karachi: Habib Bank Limited (HBL) has maintained a steady interim dividend payout of PKR 4.0 per share for the second quarter of 2024, reflecting a stable financial posture despite a modest decrease in quarterly profit. The bank reported a net profit after tax (NPAT) of PKR 14.3 billion for 2QCY24, marking a 6% decline from the previous quarter but an 11% increase year-over-year.

According to AKD Securities Limited, HBL’s net interest income for the quarter was PKR 61.0 billion, showing a slight increase from both the preceding quarter and the same period last year. The bank’s net interest margin (NIM) fell to 5.0% due to declining yields on investments and increased borrowing costs. Additionally, the bank faced higher provisioning for credit allowances, which surged 77% quarter-over-quarter and 129% year-over-year to PKR 6.5 billion, reflecting a cautious approach to potential credit risks.

Non-interest income stood at PKR 19.4 billion, experiencing a quarterly dip but rising 25% from the same quarter last year, buoyed by significant gains in foreign exchange income and fee-based earnings. The operating expenses recorded were PKR 46.2 billion, consistent with the previous quarter but up 13% from the second quarter of 2023. This led to a cost-to-income ratio of 57.5%, slightly improved from the first quarter.

Alongside the financial results, HBL reiterated its dividend payout, culminating in a total dividend of PKR 8.0 per share for the first half of 2024, a substantial increase compared to the same period last year. The bank’s stable dividend payout, coupled with a comprehensive income statement reflecting robust earnings and prudent cost management, underscores its continued commitment to delivering shareholder value in a fluctuating economic landscape.