Bank AL Habib Limited (BAHL) has indicated that its half year ended on June 30, 2025 registered a drop in its profitability. The bank registered profit after tax (PAT) of PKR 19.79 billion year on year decline against PKR 21.66 billion in the year 2010 alone.
Bank AL Habib Earnings Decline in Key Financial Indicators
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Earnings per share (EPS) decreased to PKR 17.80 as opposed to PKR 19.49, and this is a 8.67 percent decline.
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The EPS was PKR 17.39, as compared to PKR 19.02 in the first half of the year 2024 on a consolidated basis.
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In the second quarter, the company has registered an EPS of PKR 8.20, which is 18% and 11% lower than QoQ and YoY respectively, indicating that the company is experiencing an income squeezer.
This continued bank al habib earnings decline highlights the effect of net interest income compression despite growth in non-markup income.
Breakdown of Income and Expenses
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Net Interest Income (NII): PKR 66.33 billion in H1 2025 versus PKR 74.64 billion last year, showing an 11% decline.
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Non-Markup/Interest Income: Grew to PKR 15.34 billion as compared to PKR 14.17 billion in H1 2024.
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Operating Expenses: Increase to PKR 45.24 billion compared to PKR 40.81 billion in line with an increase in cost pressures.
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Taxation: A little bumped up to PKR 19.75 billion as compared to PKR 19.46 billion.
The general findings verify that the bank al habib earnings decline is largely attributed to lower net interest margins, increased expenses and tax.
Bank AL Habib declared a provisional dividend of PKR 3.50/share and the total dividend amounted to PKR 7.00/share during the half year.
Industry analysts note that the bank al habib earnings decline reflects the broader impact of monetary policy adjustments and asset repricing in Pakistan’s banking sector. While non-markup income supported revenues, it was not enough to offset weaker NII and rising expenses.
