Islamabad, Feb 20: Habib Bank Limited (HBL) has reported a record-breaking profit before tax of Rs. 120.3 billion for the year ending December 31, 2024, reflecting a 6% increase from the previous year. However, due to a significant rise in taxation, with the government imposing a 54% tax rate on banks, the net profit stood at Rs. 57.8 billion. The earnings per share (EPS) for 2024 reached Rs. 39.85, slightly higher than Rs. 39.32 in 2023.
The bank announced a final cash dividend of Rs. 4.25 per share (42.5%) for the fiscal year, in addition to interim dividends totaling Rs. 12 per share (120%). HBL’s balance sheet expanded by 9%, reaching Rs. 6.1 trillion, with total deposits climbing to Rs. 4.4 trillion, marking an increase of Rs. 228 billion compared to December 2023. Domestic deposits surged by Rs. 187 billion, touching Rs. 3.6 trillion, while the Current and Savings Account (CASA) ratio strengthened to nearly 90%.
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HBL’s loan portfolio saw a remarkable 30% growth, reaching Rs. 2.4 trillion, with domestic lending surpassing Rs. 2.0 trillion. The bank’s consumer finance division continued its upward trajectory, achieving Rs. 143 billion, while agricultural financing crossed Rs. 100 billion.
Despite a 900-basis-point reduction in the State Bank of Pakistan’s policy rate, HBL’s net interest income rose to Rs. 246 billion, supported by a 17% expansion in average domestic balances and better international business spreads. Non-interest income exhibited an impressive 68% growth, reaching Rs. 96.5 billion, primarily driven by robust Treasury operations. Fee-based revenues rose by 17% to Rs. 49.5 billion, with significant contributions from credit card services, bancassurance, and retail banking, pushing total revenue up by 14% to Rs. 342 billion.
The bank maintained disciplined cost management, limiting administrative expense growth to 13%, which improved the cost-to-income ratio to 56.3%. Despite a minor increase in non-performing loans, HBL’s infection ratio remained at a historic low of 4.3%. The Capital Adequacy Ratio (CAR) improved from 16.0% in 2023 to 17.7% in 2024, well above regulatory requirements.
HBL remains committed to supporting Pakistan’s agricultural sector, launching HBL Zarai Services Limited to enhance farming efficiency and financial inclusion. Additionally, the bank continues to lead in SME financing, earning recognition as ‘The Best SME Bank’ at the Pakistan Banking Awards.
For its outstanding performance and innovation, HBL received multiple accolades, including ‘Pakistan’s Best Bank’ and ‘Best Bank for ESG’ from Euromoney, as well as the ‘Best Conventional Bank of the Year’ award from FPCCI, reinforcing its leadership in the financial sector.
