Karachi: Habib Bank Limited (HBL) has announced a record-breaking profit before tax of Rs 85.9 billion for the first nine months of 2024, marking a 3% increase from the previous year. The bank attributes this growth to robust fundamentals across domestic businesses and improvements in its international franchise, which together propelled its profit after tax to Rs 43.3 billion.
According to Habib Bank Limited, the bank’s performance in 9M 2024 was characterized by an increase in deposits and advances, enhanced net interest income, and a significant rise in non-fund income. The bank’s earnings per share also increased to Rs 30.03, alongside a declared interim dividend of Rs 4 per share, which follows an earlier dividend of Rs 8 per share.
HBL’s financial growth has been supported by a 12% increase in its balance sheet footings to Rs 6.2 trillion, primarily driven by a Rs 660 billion rise in deposits. The bank reported an 18% increase in domestic deposits to Rs 4.1 trillion, with low-cost deposits constituting over 65% of this growth. The CASA ratio improved to 87.3%, indicating efficient management of cost of funds and deposits.
The bank’s net interest income grew by 4.2% to Rs 185.3 billion, underpinned by policy rate cuts that spurred an uptick in lending, with advances increasing by 3.9% to Rs 1.8 trillion. Non-fund income also saw a remarkable increase, growing by nearly 60% over the same period last year to Rs 60.7 billion. This was largely due to a 20% increase in fee income to Rs 36.6 billion, with significant contributions from the bank’s flagship Cards business.
HBL’s President and CEO, Muhammad Nassir Salim, highlighted the bank’s strategic initiatives, noting, “HBL’s leadership position across all business segments and a focus on serving our clients better have driven our results. We continue to accelerate our digital journey, ensuring a majority of our transactions and volumes are channeled through our digital platforms.”
Furthermore, the bank has maintained a strong emphasis on cost optimization, which has helped to reduce the cost-to-income ratio to 55.6% for Q3’24. The Capital Adequacy Ratio (CAR) rose to a four-year high of 16.39%, with the Tier-1 CAR reaching 12.55%, well above the minimum requirements, reflecting the bank’s solid financial health and prudent risk management.
HBL’s commitment to sustainability and community support remains strong, with the HBL Foundation allocating significant resources to healthcare and education initiatives, benefiting thousands of individuals across Pakistan.
As HBL continues to expand its influence in both domestic and international markets, it remains focused on sustaining its growth trajectory and enhancing shareholder value through strategic investments and a client-centric approach.