Karachi: Habib Bank Limited (HBL) presented its financial performance for the first nine months of 2025 during an analyst briefing, highlighting a notable increase in profit and significant improvements in domestic subsidiaries. The bank reported a profit of PkR51.3 billion, marking a 16% rise from the same period last year.

The core domestic Profit Before Tax (PBT) saw a 31% year-over-year increase, reaching PkR112 billion. This growth reflects the bank's strengthened domestic operations. HBL's domestic subsidiaries demonstrated a notable turnaround, posting a profitability of PkR2.4 billion, a significant improvement from a loss of PkR4.5 billion in the corresponding period last year. HBL Microfinance, in particular, reported a profit of PkR1.3 billion, recovering from a loss of PkR6.5 billion previously, due to higher provisions in the previous year.

Net Interest Income (NII) grew by 11% year-over-year, despite margin compression, attributed to a growth in Current Account deposits amounting to PkR264 billion. This growth improved the overall Current and Savings Account (CASA) mix, effectively reducing funding costs. Additionally, a higher allocation towards floating rate government securities maintained at healthy spreads contributed to this performance.

Non-Funded Income (NFI) also exhibited an 11% year-over-year growth, primarily driven by a 1.2 times increase in capital gain.

These factors collectively underscore HBL's effective strategies in navigating financial challenges and optimizing its portfolio, resulting in a strong financial position as the year progresses.