BAHL 1HCY26 profit falls 22%

Mettis Global reported that Bank Al-Habib Limited (PSX: BAHL) saw its consolidated net profit drop 22% in the half year ended June 30, 2026. Earnings came to Rs15.41bn, against Rs19.79bn a year earlier, while earnings per share slipped to Rs13.85 from Rs17.80. The bank also announced an interim cash dividend of Rs3.5 per share alongside the figures.

The main pressure came from a slight drop in net mark-up income, which fell 2% to Rs65.10bn, while operating expenses rose 16% to Rs52.18bn as the bank expanded its branch network and faced inflation. Non-markup income offset part of this, climbing 20% to Rs19.95bn, with foreign exchange income up 80% to Rs6.40bn. Even so, profit before credit loss allowance fell 14% to Rs32.16bn.

A swing in credit loss provisions weighed further, with a net charge of Rs18.83m this period compared with a Rs2.65bn reversal a year earlier. Pre-tax profit fell 20% to Rs32.14bn, and a 17% lower tax charge of Rs16.73bn softened the decline in the final result.