KARACHI: First Habib Modaraba (FHM) reported a profit after tax of Rs589.04 million for the nine months ended March 31, 2026, reflecting resilient financial performance despite a challenging operating environment marked by declining lending rates and global economic uncertainty. The company announced the results in its latest quarterly financial statements.
The Modaraba recorded earnings per certificate (EPS) of Rs5.31, compared with Rs5.92 in the corresponding period last year. Profit before taxation stood at Rs917.43 million, slightly higher than Rs912.75 million recorded in the same period of FY25.
During the nine-month period, income from diminishing Musharaka financing amounted to Rs3.56 billion, while financial charges declined to Rs2.41 billion, helping the company maintain stable profitability despite lower benchmark interest rates.
FHM also continued to expand its financing portfolio, with total assets increasing to Rs40.31 billion as of March 31, 2026, compared with Rs34.75 billion at the end of June 2025. Diminishing Musharaka financing rose significantly, reflecting continued business expansion and healthy financing activity.
According to the Board of Directors, the Modaraba disbursed approximately Rs16.53 billion during the first nine months of FY26, compared with Rs14.20 billion in the corresponding period last year. Management stated that business performance remained satisfactory despite lower lending rates resulting from reductions in the State Bank of Pakistan’s policy rate.
The Board highlighted that ongoing geopolitical tensions in the Middle East and rising global energy prices pose risks to Pakistan’s economic outlook. It warned that prolonged regional conflict could increase inflationary pressures, impact exchange rate stability, and potentially lead to higher policy rates, affecting business activity across the country.
Despite these external challenges, First Habib Modaraba said it remains focused on sustainable growth, disciplined risk management, and expanding its financing portfolio while adapting its business strategy to evolving market conditions. Management expressed confidence that any improvement in regional stability would support economic recovery and create a more favorable business environment in the coming months.
