⚡ Flash Summary
HBL reported a record consolidated profit before tax of Rs 112.2 billion for the first nine months of 2025, a 31% increase year-over-year. The growth was attributed to strong performance across all business lines. Profit after tax rose by 19% to Rs 51.4 billion, although the industry is still burdened by higher taxes. Earnings per share improved from Rs 30.03 in 9M’24 to Rs 34.97 in 9M’25. An interim cash dividend of Rs 5.00 per share (50%) was declared for the quarter ended September 30, 2025.
📌 Key Takeaways
- 📈 Real GDP growth improved to 3.0% in FY’25, supported by the Industrial sector.
- ⚠️ Inflation increased to 5.6% in Sep’25, posing a risk to the SBP’s target range.
- 🌐 Trade deficit widened by 10.2% to $7.5 billion in Q1FY’26.
- 💰 Remittance flows remained strong at $9.5 billion in Q1FY’26.
- ✅ Pakistan reached a Staff Level Agreement with the IMF in Oct’25.
- 🚀 KSE 100 Index posted a 32% gain in Q1FY’26, crossing 165k.
- 🏦 MPC maintained the policy rate at 11.0% in Sep’25.
- 🏆 HBL delivered a record consolidated profit before tax of Rs 112.2 billion, up 31%.
- 💲 Profit after tax rose to Rs 51.4 billion, up 19%.
- ⭐ Earnings per share improved to Rs 34.97, from Rs 30.03.
- ⚖️ Bank’s balance sheet grew by 20% to Rs 7.2 trillion.
- deposit base of Rs 5.1 trillion.
- 🔒 Domestic deposits rose by 18% to Rs 4.3 trillion.
- 🌱 Net interest income grew by 11% to Rs 207 billion.
- 🚀 Non-fund income increased to Rs 68 billion.
- 📉 Cost/income ratio improved to 55.5%, from 56.8%.
- 📉 Infection ratio reduced to 4.9%.
🎯 Investment Thesis
Given the strong financial performance, HBL’s stock is currently a HOLD. While the bank demonstrates growth and operational efficiencies, factors such as the higher tax burden and external economic conditions are a big headwind. The price target is revised to previous levels, 5-10% above the current price, until the external environment improves.
Disclaimer: AI-generated analysis. Not financial advice.