HBL declares H1’26 profit before tax of Rs 73.1 billion, reflecting continued client focus and disciplined execution of strategy

HBL today declared a consolidated profit before tax of Rs 73.1 billion, and a profit after tax of Rs 34.5 billion for the half year ended June 30, 2026. EPS for H1’26 increased to Rs 23.51. Along with the results, the Bank declared an interim cash dividend for the second quarter ended June 30, 2026, at Rs 6.0 per share. This is in addition to the interim cash dividend already paid at Rs 6.0 per share.

HBL’s balance sheet grew to Rs 8.0 trillion, with total deposits closing at Rs 5.9 trillion. Domestic deposits increased to a record high of Rs 5.1 trillion, purely driven by strong current account mobilization. Consequently, the domestic CA mix improved from 37.6% in December 2025 to 42.5% in June 2026. HBL’s total advances increased to Rs 2.1 trillion. The Bank’s industry leading Consumer portfolio continued its stellar growth trajectory, reaching Rs 187 billion, while the Group’s agriculture financing increased to over Rs 110 billion.

HBL’s interest margins were effectively supported by volumetric expansion of ~ Rs 700 billion in the average balance sheet, and a stronger funding mix driven by consistent growth in the average current accounts. As a result, HBL’s net interest income grew to Rs 140 billion in H1’26. Non-Fund Income rose to Rs 47 billion, driven by double-digit growth in fees and commissions and an outstanding treasury performance. Continued growth in the flagship Cards business, together with healthy contributions from Remittances and G2P income, supported revenue growth. HBL’s total revenue thus increased to Rs 187 billion.

Effective cost management resulted in a subdued growth of 6% in the Bank’s administrative expenses. With sustained profitability, HBL’s Tier I CAR of 13.7% and total CAR of 17.2% remained well above required levels.

Commenting on the Bank’s performance, Muhammad Nassir Salim, President & CEO – HBL, said: “HBL’s solid H1’26 results reflect our focus on core earnings, led by expansion in network, technology investments and a strong business momentum in each segment. While being well diversified on a market leading revenue base, we remain committed to our future growth with disciplined execution. We enter H2 focused on accelerating scale with profitability and creating sustainable value for our clients and stakeholders.”

Delivering value for stakeholders

HBL reinforced its market-leading reach during the first half of 2026 through a nationwide distribution network of over 140,000 touchpoints. With ≈2,000 branches, including HBL Microfinance Bank, the Bank serves 40 million customers across Pakistan. The network includes 56 HBL Prestige lounges, 17 SME Trade Centers, 609 Islamic Banking branches, and more than 500 branches focused on SME and agricultural sectors.

The Bank continued to lead the banking sector’s digital transformation through its ongoing core banking upgrade with Temenos, one of the largest and most complex implementations in the region. 480+ branches have successfully migrated to the new platform, with the rollout continuing across the network.

HBL also advanced the phased rollout of its Brand Refresh across Pakistan, with a more consistent customer experience across physical and digital touchpoints while reinforcing HBL’s position as Pakistan’s leading financial institution.

Beyond its domestic market, HBL strengthened Pakistan’s access to regional and global debt markets by acting as Financial Advisor in the successful issuance of the inaugural Panda Bond of the Government of Pakistan, marking the country’s entry into the Chinese bond market. The Sustainable Development Bond is aimed at supporting transformative national priority projects with high economic, social and environmental impact.

Building on its commitment to supporting Pakistan’s economy, the Bank further demonstrated its expertise in financial markets and advisory through landmark transactions, including an Interest Rate Swap Agreement with Engro subsidiaries, its role as exclusive buy-side financial advisor and arranger of Shariah-compliant financing for Maple Leaf Cement Factory Limited, and its appointment as Inter-Creditor Agent and Mandated Lead Arranger for Frontier Works Organization’s landmark project finance facility.

The Bank also reinforced its leadership in digital payments with the launch of the HBL PayPak UnionPay Co-Badge Debit Card, developed in partnership with 1LINK-operated PayPak and UnionPay International. The card enables secure and seamless domestic and international transactions while supporting the State Bank of Pakistan’s vision of promoting PayPak as a secure, inclusive and interoperable domestic payment ecosystem.

This year, the Bank celebrated the fifth anniversary of its Beijing Branch, reaffirming its commitment to strengthening financial connectivity between Pakistan and China. Established in 2021, HBL remains the only Pakistani bank with a branch in Beijing. Together with its Urumqi Branch, it reflects HBL’s growing strategic importance in one of the world’s most important economic corridors.

Further reinforcing its regional leadership, HBL was nominated as Chair of the Council of the Interbank Consortium of the SCO (SCO IBC) for the forthcoming year 2026–2027. As a member bank of the SCO IBC, HBL has long promoted regional financial integration, facilitating trade and supporting investment among SCO member countries.

Beyond its business achievements, HBL Foundation disbursed Rs 226 million during the first half of 2026 to support healthcare, education and community development through healthcare access, scholarships, skills development and community welfare initiatives, reinforcing HBL’s commitment to inclusive and sustainable development across Pakistan.

The Bank also strengthened its connection with communities through sport as HBLPSL successfully concluded its 11th season, marking another milestone in its long-standing partnership with Pakistan’s premier sporting platform.

In recognition of its continued leadership and innovation, HBL was named ‘Pakistan’s Best Bank’ by Euromoney this year, while also receiving awards for ‘Pakistan’s Best Retail Bank’, ‘Pakistan’s Best Bank for Sustainable Finance’, ‘Pakistan’s Best for Capital Markets Advisory’, and ‘Pakistan’s Best Investment Bank for M&A’. The Euromoney Awards are the most prestigious recognition in the banking industry, globally. This marks the eighth time in the last ten years that HBL has been named Pakistan’s Best Bank by Euromoney.