HMB 1HCY26 profit drops 19%, declares Rs2.5 dividend

Habib Metropolitan Bank (PSX: HMB) reported a 19% drop in profit for the half-year to June 2026, earning Rs9.7bn against Rs12.01bn a year earlier, according to Mettis Global. The bank also declared an interim cash dividend of Rs2.50 per share alongside the results. Earnings per share fell to Rs8.83 from Rs11.11 in the same period last year.

Net mark-up income, the main driver of the decline, shrank 15% to Rs30.77bn from Rs36.03bn, as interest expense rose 9% to Rs52.01bn while interest earned eased 1% to Rs82.78bn. Non-mark-up income edged up 4% to Rs12.23bn, aided by a 16% gain in foreign exchange income and a 42% rise in dividend income, though securities gains fell 26%. Operating costs rose 13%, but a 96% fall in credit loss charges to Rs40.13m limited the pre-tax decline, which left profit before tax at Rs20bn, down 23%.

A 26% lower tax charge of Rs10.30bn left net profit at Rs9.7bn, while total income fell 10% to Rs43bn. Lighter tax and smaller provisions together cushioned the squeeze on mark-up income, though total non-mark-up expenses rose 11% to Rs22.97bn.