HABIBMETRO Delivers Strong H1 Performance Despite Challenging Economic Conditions

Habib Metropolitan Bank Limited (HABIBMETRO) has reported a profit before tax of Rs19.19 billion for the half year ended June 30, 2026, reflecting the bank’s continued financial strength despite a challenging macroeconomic environment.

According to the bank’s half-yearly report, net mark-up income stood at Rs29.80 billion, while non-mark-up income increased by 4% to Rs12.10 billion during the first six months of 2026. The bank reported earnings per share (EPS) of Rs8.78 for the period.

Investments and Advances Continue to Grow

HABIBMETRO’s balance sheet also expanded during the period. Investments reached Rs1.02 trillion by June 30, 2026, compared with Rs864.65 billion at the end of December 2025. Net advances increased to Rs534.12 billion, up from Rs514.78 billion six months earlier.

Deposits remained another key strength for the bank, rising 11.1% to Rs1.24 trillion. Current deposits accounted for around 36% of total deposits, highlighting the bank’s continued ability to attract low-cost funding.

The bank’s financial position showed total assets of approximately Rs1.81 trillion at the end of June 2026, while net assets stood at Rs125.21 billion.

Profit Remains Under Pressure Compared With Last Year

While HABIBMETRO remained profitable, its earnings were lower than the corresponding period of 2025. The unconsolidated financial statements show profit before tax of Rs19.19 billion in H1 2026, compared with Rs25.23 billion in H1 2025. Profit after tax declined to Rs9.20 billion from Rs11.57 billion, while EPS fell from Rs11.04 to Rs8.78.

The decline came despite continued growth in the bank’s balance sheet. Operating expenses increased to Rs22.08 billion from Rs19.52 billion in the comparable period, while net mark-up income declined to Rs29.80 billion from Rs35.00 billion.

Strong Capital Position and Dividend Payout

The bank reported net equity of Rs125.21 billion and a capital adequacy ratio of 15.63%, providing a solid capital base to support its operations and future growth.

For shareholders, the Board approved an interim cash dividend of Rs2.50 per share for the second quarter, in addition to the Rs2.50 per share paid for the first quarter. This brought the total interim dividend for H1 2026 to Rs5.00 per share, or 50%.

Credit Rating Upgraded to AAA

One of the notable developments during the period was PACRA’s upgrade of HABIBMETRO’s long-term credit rating to AAA, the highest attainable rating, while its short-term rating was maintained at A1+. The bank said the ratings reflect its exceptionally strong capacity to meet financial commitments and high credit quality.

Expanding Conventional and Islamic Banking Footprint

HABIBMETRO continued to expand its nationwide presence, operating 573 branches across 229 cities, including 252 Islamic banking branches and 311 Islamic banking windows. The bank provides Islamic banking products and services under its Sirat brand.

The bank also highlighted its continued investment in digital banking, including improvements to its mobile applications, web banking and card-based services. Alongside its digital transformation efforts, HABIBMETRO said it remains focused on corporate social responsibility, particularly in healthcare and education.

Outlook

HABIBMETRO’s first-half results present a mixed but fundamentally resilient picture. Profitability came under pressure compared with the same period last year, but the bank continued to expand deposits, investments and advances while maintaining a strong capital position and the highest long-term credit rating.

With Pakistan’s banking sector operating against a backdrop of changing interest rates, inflationary pressures and economic uncertainty, HABIBMETRO’s ability to maintain balance-sheet growth while protecting asset quality and capital strength will remain important in the second half of 2026.

The interim financial statements were reviewed by KPMG Taseer Hadi & Co.; the auditors concluded that nothing had come to their attention indicating that the statements were not prepared, in all material respects, in accordance with applicable accounting and reporting standards.