Karachi February 20 2025: HBL, the largest Bank of Pakistan, declared a record profit before tax of PKR 120.3 billion for the year ended December 31, 2024, 6 percent higher than in 2023, according to Bank filing to the Pakistan Stock Exchange.
The profit after tax was PKR 57.8 billion as the Government once again increased the tax rate on Banks to a massive 54 percent. EPS for 2024 was PKR 39.85, compared to PKR 39.32 in 2023. Along with the results, the Bank declared a final Cash Dividend of PKR 4.25 per share i.e. 42.5 percent for the year ended December 31, 2024. This is in addition to the interim Cash Dividend(s) already paid at PKR 12 per share i.e. 120 percent.
HBL’s balance sheet grew by 9 percent to PKR 6.1 trillion, with total deposits closing at PKR 4.4 trillion, a growth of PKR 228 billion over December 2023. Domestic deposits grew by PKR 187 billion reaching PKR 3.6 trillion, with the CASA ratio showing a strong improvement to reach nearly 90 percent. HBL’s total advances increased by over 30 percent to PKR 2.4 trillion with the domestic lending book crossing a landmark PKR 2.0 trillion. Our flagship consumer portfolio continued its growth trajectory, reaching PKR 143 billion, while the Group’s agriculture financing increased to over PKR 100 billion.
Despite drastic monetary easing, which saw a drop of 900bps in the SBP’s Policy Rate over the year, HBL’s net interest income increased to PKR 246 billion. This was supported by a 17 percent volumetric expansion in the average domestic balance sheet and improved spreads in the international business. Non-fund income grew by an impressive 68 percent to PKR 96.5 billion, on the back of a very strong contribution from the Treasury business. The fee franchise yet again delivered excellent double-digit growth, increasing by 17 percent to PKR 49.5 billion; Cards contributed more than 50 percent of the increase along with solid contributions from Bancassurance and retail banking. HBL’s total revenues thus increased by 14 percent to an industry-leading PKR 342 billion.
Conscious efforts to optimize costs has contained administrative expense growth to 13 percent, improving the cost/income ratio to 56.3 percent in 2024. Despite an uptick in non-performing loans, the infection ratio is at an all-time low of 4.3 percent. HBL’s sustained profitability has led to a strong improvement in the Capital Adequacy Ratio which increased from 16.0 percent in Dec’23 to a solid 17.7 percent, well above required levels.
Commenting on the Bank’s results, Muhammad Nassir Salim, President & CEO – HBL, said, “HBL continues to deliver value for its stakeholders while navigating an increasingly complex external environment. The strong 2024 financial results ratify the Bank’s strategic direction. The Bank is proud to serve its valued clients and play its due role in the economic development of Pakistan.”
Delivering value for stakeholders
The Bank is committed to providing holistic support to the vital agriculture sector to enhance national food security. Earlier this year, HBL launched HBL Zarai Services Limited, a wholly-owned subsidiary aimed at revolutionizing the agricultural value chain.
HBL Zarai focuses on boosting local farming productivity and fostering inclusive growth by providing farmers with agronomy services, crop inputs, access to modern mechanization and more. These services are offered through Zarai Deras, specialized distribution and service centers in Burewalla, Sahiwal, Pakpattan and Sadoke. By improving access to essential resources, HBL Zarai enhances farmer productivity, contributing to the economic development of Pakistan’s agricultural sector.
HBL is the largest lender and mobilizer of government agriculture financing subsidies including solar tube wells, tractors, and livestock. With a total portfolio of over PKR 100 billion, the HBL Group holds the largest market share in both commercial and microfinance agriculture lending in Pakistan.
HBL is fully committed to growing the “S” of SME business in a significant and sustainable way. The Bank’s focus is on cash flow-based lending where it enjoys the highest portfolio in the industry. SME businesses are crucial drivers of the economy and require enhanced access to formal finance. HBL has undertaken a number of initiatives to help transform the SME landscape, fostering growth and creating opportunities for small businesses. As testament to our efforts HBL has been recognized as ‘The Best SME Bank’ by the ‘Pakistan Banking Awards’.
HBL remains a thought leader, and has actively supported SBP and the World Bank, in the development of the National Green Taxonomy. This has allowed the Bank to further identify green financing opportunities for climate change mitigation and adaptation.
In recognition of the Bank’s leadership, performance and innovative approach, Euromoney Awards for Excellence 2024 awarded HBL the accolades of ‘Pakistan’s Best Bank’, ‘Pakistan’s Best Bank for Corporates’, and ‘Pakistan’s Best Bank for ESG’. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) awarded HBL the accolade of the ‘Best Conventional Bank of the Year Excellence Award’. Moreover, HBL was honoured with the ‘Best Board of the Year’ award by the Pakistan Institute of Corporate Governance (PICG).
