Karachi: Bank AL Habib Limited reported a decline in profitability for the three-month period ended March 31, 2026, with both standalone and consolidated earnings coming under pressure compared with the same period last year.

According to the bank’s unaudited financial statements, standalone profit after taxation fell to Rs7.09 billion in the first quarter of 2026, compared with Rs10.21 billion recorded in the corresponding period of 2025. This represents a decline of around 31% year-on-year.

The bank’s profit before taxation also decreased to Rs15.02 billion, from Rs20.60 billion a year earlier. Earnings per share declined to Rs6.38, compared with Rs9.19 in the first quarter of 2025.

Net interest income remains under pressure

Bank AL Habib’s standalone net mark-up or interest income stood at Rs32.57 billion during the quarter, slightly below Rs33.56 billion in the same period last year.

Mark-up, return and interest earned amounted to Rs82.53 billion, while mark-up, return and interest expenses stood at Rs49.96 billion.

Meanwhile, non-mark-up income declined to Rs7.44 billion, compared with Rs7.74 billion in the corresponding quarter of 2025. Fee and commission income was recorded at Rs5.04 billion, while foreign exchange income increased to approximately Rs2.27 billion.

As a result, total standalone income reached Rs40.01 billion, compared with Rs41.29 billion a year earlier.

Higher operating expenses add to pressure

The bank also faced higher operating costs during the quarter. Standalone non-mark-up or interest expenses increased to Rs24.00 billion, compared with Rs21.85 billion in the first quarter of 2025.

Profit before credit loss allowance consequently declined to Rs16.01 billion, from Rs19.44 billion.

Credit loss allowance and write-offs stood at Rs982.39 million during the quarter, compared with a net reversal of approximately Rs1.16 billion recorded in the same period last year. This further affected the bank’s bottom-line performance.

Consolidated earnings also decline

On a consolidated basis, Bank AL Habib posted profit after taxation of Rs7.27 billion for the quarter, down from Rs10.72 billion in the same period of 2025.

Consolidated profit before taxation fell to Rs15.31 billion, compared with Rs21.34 billion a year earlier, while earnings per share attributable to shareholders of the holding company declined to Rs6.54 from Rs9.65.

Consolidated total income stood at Rs40.63 billion, compared with Rs42.25 billion in the prior-year period.

The results indicate that Bank AL Habib began 2026 with weaker earnings compared with the first quarter of the previous year. Lower income, higher operating expenses and credit-loss charges contributed to the decline in profitability.

The financial statements were issued by Bank AL Habib Limited and cover the three-month period ended March 31, 2026. The results are unaudited, according to the document.