⚡ Flash Summary

Bank AL Habib Limited (BAHL) held a corporate briefing session, outlining its key performance highlights as of September 30, 2025. The bank reported PKR 53.5 Billion in Profit Before Tax (PBT), a decrease of 15.35% year-over-year (YoY). Profit After Tax (PAT) stood at PKR 25.4 Billion, down 23.26% YoY. Despite the decrease in profitability, the bank maintains a strong credit rating of AAA (Long Term) and A1+ (Short Term).

📌 Key Takeaways

• 🏦 Incorporation Date: October 1991, Operations began in January 1992.
• 🌍 Global Presence: Pakistan, Bahrain, Malaysia, Türkiye, UAE, & China.
• 📍 Branch Network: Expanded to 1305 branches.
• 🏆 Recognition: Received J.P. Morgan’s Elite Quality Recognition Award for U.S. Dollar Clearing (MT202 99.90%).
• 🏅 Awards: Recognized as the ‘4th Largest Bank in Pakistan Remittance Market’ at the Pakistan Remittance Summit 2024.
• ⭐ Awards: Awarded “Outstanding Global Trade Finance Program (GTFP) Issuing Bank 2024.
• ✨ Credit Rating: Maintained AAA (Long Term) and A1+ (Short Term) ratings.
• 📉 Profitability: PBT decreased by 15.35% YoY to PKR 53.5 Billion.
• 🔻 Profitability: PAT declined by 23.26% YoY to PKR 25.4 Billion.
• ⬆ Deposits: Deposits grew by 9.61% Year-to-Date (YTD) to PKR 2,498 Billion.
• ⬇ Advances: Advances decreased slightly by 0.44% YTD to PKR 907 Billion.
• 📊 Equity: Equity (excluding surplus) increased by 8.46% YTD to PKR 141 Billion.
• ➗ Earnings Per Share: EPS stands at PKR 22.85.
• 💱 NPL Ratio: Non-Performing Loan (NPL) ratio is at 3.70%.

🎯 Investment Thesis

Based on the information, a HOLD recommendation is appropriate. The bank has a strong brand, and deposit base. However, the decline in profitability is concerning and needs to be addressed. A price target cannot be reliably determined without further financial details and an assessment of future earnings potential. Further investigation into the reasons behind the profit decline is warranted.