Habib Metropolitan Bank Limited (HMB) reported a marginal increase of 0.36% in its profit after tax for the half-year ended June 30, 2025, amounting to Rs12.01 billion, compared to Rs11.96 billion in the same period last year.
The bank declared an interim cash dividend of Rs2.5 per share, maintaining its previous payout rate. The basic and diluted earnings per share (EPS) slightly decreased by 0.09% to Rs11.11, down from Rs11.12 in FY24. Following the announcement, the bank’s share price has fallen by over Rs 4.3 (3.7%). Opening today at Rs 117, at the end of the trading session, the HMB stock was trading at around Rs 112.17.
HMB’s net mark-up/interest income grew by 11.88%, reaching Rs36.03 billion, driven by a reduction in mark-up/interest expense, which fell by 47.21%. Non-mark-up/interest income also showed growth, increasing by 24.04% to Rs11.73 billion, primarily supported by a 102.27% rise in gains on securities and a 22.52% increase in foreign exchange income.
Operating expenses rose by 23.07% to Rs19.89 billion, while credit loss allowance declined by 45.74%, resulting in a 13.24% increase in profit before taxation to Rs25.93 billion. Taxation grew by 27.32% to Rs13.92 billion.
The bank’s overall performance reflects growth in key revenue segments, particularly non-mark-up income, despite challenges in mark-up/interest income.
