Habib Bank Limited reports marginal profit growth for 2024

Habib Bank Limited (HBL) announced a net profit of PKR 57.8 billion ($206 million) for the year ended December 2024, nearly unchanged from PKR 57.7 billion recorded the previous year.

The earnings per share (EPS) for the year stood at PKR 39.85. The bank also declared a final cash dividend of PKR 4.25 per share, bringing the full-year payout to PKR 16.25 per share.

An analyst at Sherman Securities attributed the unchanged earnings primarily to a decrease in net interest earned, higher provisioning during the period, and increased non-interest expenses.

Non-interest income surged by 67.8% to PKR 96.5 billion in 2024, compared to PKR 57.45 billion the previous year. The growth was driven mainly by a significant increase in gains on government securities (PKR 10.4 billion) and other income (PKR 15 billion).

HBL's net interest income for 2024 was PKR 245.6 billion, up 1.4% from PKR 242.13 billion the previous year. The bank's effective tax rate (ETR) was reported at 52%.