HBL Records Strong Financial Performance in Q1 2024

Habib Bank Limited (HBL), Pakistan's largest commercial bank, has reported impressive financial results for the first quarter of 2024. Despite ongoing macroeconomic challenges, HBL announced a record quarterly profit and a dividend of Rs4 per share. The bank's pre-tax profits surged by 40 percent year-on-year, showcasing its resilience in a challenging economic environment.

Non-markup income played a significant role in boosting HBL's bottom line for 1QCY24. The bank's balance sheet remained stable at Rs5.5 trillion, with a notable increase in investments, primarily in government securities. However, the credit appetite from the private sector showed a decline, leading to a decrease in the advances portfolio.

On the liabilities front, HBL witnessed a substantial increase in deposits, driven by low-cost savings and current accounts. The bank's non-markup income more than doubled year-on-year, with fee and commission income experiencing a robust growth of 27 percent.

Despite a slight increase in non-performing loans (NPLs), HBL's infection ratio remains manageable at around 6 percent. The bank's cost-to-income ratio improved, and it is well-positioned to navigate the changing interest rate environment.

Looking ahead, HBL's performance will be influenced by the government's fiscal policies and the evolving economic landscape. The upcoming policy decisions are expected to impact the bank's asset portfolio and credit growth trajectory for the remainder of 2024.