2 weeks Ago By News Desk
Profit up 4.6%, stock down 3.6% despite positive earnings due to falling market sentiment KARACHI: Bank AL Habib Limited (PSX: BAHL) reported a 4.
59% increase in profit after tax for the quarter ended March 31, 2025, reaching Rs10.72 billion, up from Rs10.25 billion a year earlier.
The bank announced an interim cash dividend of 35% (Rs3.5 per share) alongside this result. Despite the rise in bottom line, the bank’s share price declined by 3.
55% during Thursday’s trading session on the Pakistan Stock Exchange, settling at Rs157.66 amid broader market volatility. The earnings per share (EPS) improved to Rs9.
65 from Rs9.22, reflecting a 4.66% increase year-on-year.
This growth came even as the bank’s net interest income fell by 9.38% to Rs33.64 billion due to a sharp 22.
39% drop in mark-up earned, only partially cushioned by a 28.23% reduction in interest expense. Non-mark-up income provided a key buffer, rising 7.
45% to Rs8.6 billion, led by a 31.97% surge in fee and commission income.
However, the bank recorded a Rs244 million loss from derivatives and a 31.08% dip in share of profits from associates. On the expense side, operating costs jumped by 19.
23% to Rs21.63 billion, pushing total non-mark-up expenses to Rs22.07 billion.
Even so, a net reversal of Rs1.16 billion in credit loss allowances — compared to a provisioning charge of Rs6.87 billion last year — boosted profitability.
Profit before tax rose 9.06% to Rs21.34 billion, though a 13.
98% increase in tax reduced net profit gains. Bank AL Habib, a key player in Pakistan’s commercial banking sector, has built a reputation for strong balance sheet management and conservative lending practices. In calendar year 2024, the bank posted record profits of Rs44.
1 billion, up 20% year-on-year. It maintained robust capital adequacy and asset quality, with non-performing loans below industry average. The stock had gained over 24% in the past 12 months prior to today’s dip, supported by investor confidence in its earnings resilience and digital transformation initiatives.
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