{"id":11153,"date":"2025-08-13T16:30:59","date_gmt":"2025-08-13T11:30:59","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11153"},"modified":"2025-08-13T16:31:01","modified_gmt":"2025-08-13T11:31:01","slug":"habib-metropolitan-banks-profits-hold-steady-despite-rising-costs","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/habib-metropolitan-banks-profits-hold-steady-despite-rising-costs\/","title":{"rendered":"Habib Metropolitan Bank\u2019s Profits Hold Steady Despite Rising Costs"},"content":{"rendered":"\n<p><strong>Habib Metropolitan Bank (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/hmb\/\" data-type=\"post_tag\" data-id=\"328\" target=\"_blank\" rel=\"noreferrer noopener\">HMB<\/a>)<\/strong> has released its financial results for the second quarter of 2025, showing that profits stayed almost the same compared to last year, even as expenses climbed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Earnings at a glance<\/h2>\n\n\n\n<p>For the April\u2013June 2025 period, the bank earned a profit after tax of <strong>PKR 5.76 billion<\/strong>, equal to an <strong>EPS of PKR 5.3<\/strong>. This is just 1% lower than the same quarter last year and 8% lower than the previous quarter. For the first half of the year, total profits reached <strong>PKR 12 billion<\/strong>, which is slightly higher than last year. Shareholders also received an <strong>interim cash dividend of PKR 2.5 per share<\/strong>, bringing the total payout so far this year to PKR 5.0 per share.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Income from lending and investments<\/h2>\n\n\n\n<p>The bank\u2019s <strong>net interest income<\/strong>, the profit it makes from lending after paying depositors, rose by 17% compared to last year, thanks to higher spreads. However, this was slightly lower than the previous quarter as the effect of recent interest rate cuts began to balance out.<\/p>\n\n\n\n<p>Non-interest income, which includes fees, capital gains, and dividends, was up 10% from last year and 15% from the last quarter. A big boost came from <strong>capital gains of PKR 1.2 billion<\/strong>, although fee income and dividends saw a slight dip.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Higher expenses put pressure on profits<\/h2>\n\n\n\n<p>Operating expenses went up sharply, <strong>24% higher than last year<\/strong>, mainly due to inflation and business expansion costs. This pushed the cost-to-income ratio to 46%, which means almost half of the bank\u2019s income is now spent on running the business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Better loan quality<\/h2>\n\n\n\n<p>On the bright side, the bank\u2019s asset quality improved. Provisions for bad loans dropped by 46% compared to last year, showing fewer defaults and better credit control.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Taxes take a big bite<\/h2>\n\n\n\n<p>The effective tax rate for the quarter was <strong>54%<\/strong>, which continues to weigh heavily on net profits.<\/p>\n\n\n\n<p><strong>Source: Taurus Securities Limited<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Habib Metropolitan Bank (HMB) has released its financial results for the second quarter of 2025, showing that profits stayed almost the same compared to last year, even as expenses climbed.<\/p>\n","protected":false},"author":9252,"featured_media":6550,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[328],"class_list":["post-11153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-hmb"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/08\/HMB-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/08\/HMB-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/08\/HMB-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/08\/HMB-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11153"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11153\/revisions"}],"predecessor-version":[{"id":11154,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11153\/revisions\/11154"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6550"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}