October 24, 2025 (MLN): Habib Metropolitan Bank Limited (PSX: HMB) has reported a consolidated profit after tax of Rs17.76 billion for the nine months ended September 30, 2025, showing a decline of 9.7% compared to Rs19.66bn in the same period last year.

The bank also declared an interim cash dividend of Rs2.50 per share (25%), in addition to the Rs5.00 per share (50%) already paid.

Total income of the bank increased 4.5% to Rs70.45bn during 9MFY25, compared to Rs67.39bn in the corresponding period of FY24.

Net mark-up/interest income remained stable at Rs52.40 billion, showing a marginal rise of 0.24% year-on-year. This was driven by a 34% drop in mark-up earned to Rs123.80bn, offset by a 47% decline in mark-up expensed to Rs71.40bn amid evolving interest rate conditions.

Non-mark-up income surged 19.4% to Rs18.05bn, fueled by an 83% jump in gains on securities and a 20% increase in foreign exchange income.

Fee and commission income also grew 6.9%, while dividend and other income rose by 14% each, indicating improved diversification of income streams.

On the expense side, operating expenses climbed 17.8% to Rs29.83bn, mainly due to persistent inflationary pressures and branch network expansion.

Including workers’ welfare and other charges, total non-mark-up expenses rose 17.7% to Rs30.90bn.

Despite the increase in costs, profit before taxation remained steady at Rs38.37bn, slightly up 0.1% from Rs38.01bn last year.

The bottom line, however, came under pressure from a 12.4% rise in taxation, which reached Rs20.61bn in the review period.

A key positive was the significant improvement in asset quality, as credit loss allowances and write-offs fell 63%, leading to a smaller provisioning charge of Rs1.17bn, compared to Rs3.14bn in 9MFY24.

Consequently, profit after tax stood at Rs17.76bn, with earnings per share (EPS) recorded at Rs16.44, down from Rs18.25 in the same period last year.