KARACHI: First Habib Modaraba (FHM) has announced its audited financial results for the year ended June 30, 2026, along with a final cash dividend of Rs. 2.25 per certificate (22.5%), reflecting the management’s commitment to rewarding certificate holders despite a decline in annual profitability.
According to the company’s notification to the Pakistan Stock Exchange (PSX), the Board of Directors of Habib Metropolitan Modaraba Management Company (Private) Limited approved the annual financial statements in its meeting held on August 6, 2026. The board did not recommend any bonus shares, right shares, or other corporate actions.
For FY2026, First Habib Modaraba reported a profit after taxation of Rs. 747.92 million, compared with Rs. 901.50 million recorded in the previous year. Earnings per certificate also declined to Rs. 6.75, down from Rs. 8.13 in FY2025, reflecting softer overall profitability during the year.
The Modaraba generated Rs. 4.85 billion in income from diminishing musharaka financing, while administrative expenses stood at Rs. 336.01 million. After accounting for financial charges, management remuneration, taxation, and other expenses, the company posted a profit before tax of Rs. 1.22 billion. Total comprehensive income for the year amounted to Rs. 726.34 million.
On the balance sheet, total assets increased to Rs. 41.73 billion as of June 30, 2026, compared with Rs. 34.75 billion a year earlier, highlighting continued growth in the Modaraba’s financing portfolio. Certificate holders’ equity also improved to Rs. 6.23 billion from Rs. 5.74 billion in the previous year.
The company has scheduled its Annual Review Meeting for October 7, 2026, at 3:00 p.m. in Karachi. Certificate transfer books will remain closed from October 1 to October 9, 2026 (both days inclusive) to determine shareholders eligible for the final cash dividend. Transfers received by the registrar before the close of business on September 30, 2026, will qualify for the entitlement.
The FY2026 results demonstrate that while First Habib Modaraba experienced a year-on-year decline in earnings, it maintained a strong asset base and continued to provide an attractive cash payout to certificate holders, underscoring its focus on delivering consistent value to investors.
