⚡ Flash Summary
HBL’s 9M’25 performance showcases resilience with a 31% growth in Profit Before Tax (PBT) compared to the last year. The bank has maintained its leadership position in core segments, boasting the largest customer base in Pakistan. Key drivers include a strong capital base, rising ROE levels, and successful digital-led initiatives. Deposit acquisition has regained momentum in 2025, and the investment portfolio is well-positioned to achieve optimal returns.
📌 Key Takeaways
- 💰 9M’25 PBT grew by 31% YoY.
- 🏦 Total deposits increased by PKR 713 Bn since Dec’24.
- 📈 CA deposits increased by PKR 371 Bn since Dec’24.
- ⭐ NII increased by 11% YoY.
- 💼 Investment portfolio stands at PKR 4.0 Tn (3rd largest).
- 📊 Total CAR at 18.32%, up 62bps since Dec’24.
- 🌐 International deposits increased by USD 110 Mn since Dec’24.
- 📱 Digital payments are up 34% YoY.
- 💳 Mobile banking payments crossed Rs 8 Tn, a 47% YoY increase.
- 🏦 Domestic CA recorded YoY increase of 23% (incremental deposit of Rs. 264 Bn).
- 💼 Capital gains of Rs. 14 Bn in 9M’25 compared to Rs. 6.6Bn in 9M’24.
- 📍 HBL has 1,640 branches in Pakistan, including 458 Islamic branches (2nd largest).
- ⭐ Highest Deposits at Rs 5T with 16% Growth v Dec′24
- ⭐ Leadership in cards – 6.7M card base
- ⭐ Leadership in Branchless Banking
🎯 Investment Thesis
HBL’s strong financial performance, market leadership, and digital initiatives make it a BUY. The bank’s robust growth in PBT, deposits, and digital payments, coupled with efficient cost management and capital gains, demonstrate its ability to deliver consistent earnings and shareholder value. Buy with a price target of PKR 350 within the next 12-18 months.
Disclaimer: AI-generated analysis. Not financial advice.