Habib Bank Limited management said on Wednesday that HBL profit rates on its investment portfolio should gradually improve as floating-rate securities reprice, while also pointing to deposit growth, digital banking traction and steady asset quality after third-quarter results.
In an analyst briefing on those results, the bank said floating-rate securities made up about 60% of its investment portfolio as of September 2026. Medium-term bonds (MTBs — shorter government paper) were about 15%, and fixed-rate securities about 25%. The fixed-rate book had a duration of 3.2 years; the overall investment portfolio’s duration was around 1.12 years. Between the second and third quarters of 2026, HBL also raised its Pakistan Investment Bond (PIB) holdings by roughly Rs450 billion.
Q3 earnings, dividend and deposit mix
For the third quarter of calendar year 2026, HBL reported earnings of Rs19.6 billion, or Rs13.33 per share, up 6.5% from the preceding quarter and in line with market expectations. The bank declared an interim cash dividend of Rs6 per share.
Current-account deposits rose 15%, or Rs273 billion, in the nine months ended September 2026, lifting their share of total deposits to 40% from 38% at the end of December 2025. Management framed that mix shift as part of a stronger low-cost funding base alongside the outlook for HBL profit rates on securities holdings.
Islamic banking, lending and asset quality
Islamic deposits reached Rs1.3 trillion in September 2026. About 36% of the branch network was Islamic — roughly 658 Islamic branches and 500 Islamic windows. The bank runs more than 2,000 branches and added about 84 in the nine-month period. Migration of its core banking system to Temenos covers 800 branches so far, with further milestones expected in 2027.
Domestic advances grew in corporate and commercial segments, with international lending also expanding. Consumer financing crossed Rs200 billion — the largest such book in the market, management said — while credit-card receivables stood at Rs66 billion. Islamic financing was about 20% of the overall loan portfolio. Asset quality stayed resilient on the bank’s figures: an infection ratio (non-performing loans as a share of advances) of 4.5% and specific coverage of 85%, backed by general provisions.
Income, digital use and regulatory notes
Foreign-exchange income rose 76% year on year, with fee income also described as strong. Mobile-app throughput increased 36%. Digital over-the-counter transactions made up 94.6% of total transactions, leaving 5.4% at physical branches.
Management said HBL already meets the State Bank of Pakistan’s (SBP — the central bank) phased rule to move its banking-book other comprehensive income portfolio into the trading book, and expects no extra capital need or hit to its Common Equity Tier 1 ratio from finishing that step. Separately, it said it expects a favourable outcome in an ongoing civil liability case in New York, distinct from earlier penalty-related matters, with proceedings on schedule though the US process may still take time.
Aasan alfaaz mein
HBL ke management ne kaha hai ke bank ke investment portfolio se milne wala munafa dheere dheere barh sakta hai, kyunke floating-rate securities dubara price ho rahi hain. Teen mahine ki kamai Rs19.6 arab thi aur share holders ko Rs6 ka interim dividend diya gaya. Current account deposits tez barhe, aur zyada tar transactions ab digital hain. Aam gahak ke liye ye bank ki sehat aur dividend ki khabar hai; aapke personal deposit rates is briefing mein alag se announce nahi hue.
