Habib Metropolitan Bank Limited (HMB) has reported a consolidated profit attributable to shareholders of approximately Rs9.25 billion for the half year ended June 30, 2026, according to its unaudited financial results.

The bank’s financial statements show earnings per share (EPS) of Rs8.83 for the six-month period, compared with Rs11.11 in the corresponding period of the previous year. The results were announced following a Board of Directors meeting held on August 13, 2026.

Net Mark-up Income Under Pressure

The bank’s core mark-up income remained substantial during the period, with mark-up earned recorded at around Rs82.78 billion, compared with Rs83.86 billion a year earlier.

However, mark-up expenses increased to approximately Rs52.08 billion, from Rs47.83 billion in the same period last year. The rise in funding costs put pressure on the bank’s net mark-up income.

Despite the pressure on its core banking spread, HMB generated Rs12.23 billion in non-mark-up income during the half year, compared with Rs11.73 billion in the corresponding period of 2025. This provided some support to overall earnings.

Expenses Also Rise

The bank recorded consolidated non-mark-up expenses of approximately Rs22.07 billion during the six months ended June 30, 2026, compared with Rs20.71 billion in the same period last year.

Higher expenses, together with increased mark-up costs, contributed to the decline in profitability compared with the previous year.

The financial statements also show that the bank’s profit before tax remained sizeable, although lower than the level recorded in the corresponding period of 2025.

Rs2.50 Per Share Interim Dividend

Alongside the financial results, HMB announced an interim cash dividend of Rs2.50 per share, equivalent to 25%, for the half year ended June 30, 2026.

The bank noted that this dividend is in addition to the final dividend of Rs2.50 per share already paid for the financial year ended June 30, 2026.

The bank also announced that its shares will trade ex-dividend from August 25 to August 27, 2026, both days inclusive. Transfers received by the bank’s Share Registrar by the close of business on August 24 will be considered for entitlement to the dividend.

Balance Sheet Remains Strong

HMB’s consolidated statement of financial position shows total assets of approximately Rs1.85 trillion as of June 30, 2026, compared with around Rs1.70 trillion at the end of December 2025.

The bank’s deposits and other accounts stood at approximately Rs1.24 trillion, while total liabilities were around Rs1.69 trillion. Net assets were reported at approximately Rs156.8 billion.

Outlook

HMB’s half-year results highlight a challenging earnings environment for the banking sector, particularly as higher funding costs put pressure on net mark-up income. Nevertheless, the bank continued to generate significant non-mark-up income and maintained a sizeable asset base.

The declaration of a Rs2.50 per share interim dividend also demonstrates the bank’s continued ability to return cash to shareholders despite the decline in earnings per share.

Overall, Habib Metropolitan Bank enters the second half of 2026 with a large balance sheet, substantial deposits and continued profitability, although managing funding costs and protecting margins will remain important for its future earnings performance.