HBL sees yields rising as floating-rate securities make up 60% of portfolio

Habib Bank Limited HBL expects yields on its investment portfolio to increase gradually as floating-rate securities are repriced, management said at a briefing on Wednesday. Those securities represented around 60% of the portfolio in September 2026.

Earnings for 2026’s third calendar-year quarter reached Rs19.6 billion (Rs13.33 per share), 6.5% higher than in the preceding quarter. It also announced an interim cash dividend of Rs6 per share.

Medium-term bonds accounted for 15% of the portfolio and fixed-rate securities for 25%. HBL said the fixed-rate holdings had a duration of 3.2 years, while the overall portfolio had a duration of around 1.12 years. The bank increased its Pakistan Investment Bond holdings by approximately Rs450 billion between the second and third quarters of 2026.

Current account deposits grew 15%, or Rs273 billion, in the nine months ended September 2026. They made up 40% of total deposits, compared with 38% at the end of December 2025. Islamic deposits reached Rs1.3 trillion in September 2026.

HBL reported an infection ratio of 4.5% and specific coverage of 85%, supplemented by general provisions. Mobile application throughput increased 36%, while digital over-the-counter transactions accounted for 94.6% of transactions and physical branches for 5.4%.