{"id":12612,"date":"2026-04-18T12:55:14","date_gmt":"2026-04-18T07:55:14","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=12612"},"modified":"2026-04-18T15:01:30","modified_gmt":"2026-04-18T10:01:30","slug":"bahl-strong-deposit-growth-but-earnings-under-pressure","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/bahl-strong-deposit-growth-but-earnings-under-pressure\/","title":{"rendered":"What\u2019s Driving the BAHL Latest Performance Shift?"},"content":{"rendered":"\n

Ticker:<\/strong> Bank Al Habib Limited BAHL<\/strong>
Analyst Briefing Date:<\/strong> April 10, 2026<\/p>\n\n\n\n

This article summarizes Bank Al Habib Limited BAHL<\/strong>\u2019s latest corporate briefing, focusing on CY25 financial performance, deposit and lending mix, investment positioning, and forward outlook on growth, efficiency, and risk management. It captures key operating metrics alongside management\u2019s expectations for deposits, margins, and expansion strategy.<\/p>\n\n\n\n

What did the management say?<\/h2>\n\n\n\n

Management outlined plans to expand the branch network by adding 33 new branches during the year, with a continued shift toward Islamic banking. They expect deposit growth to remain strong at 16\u201317%<\/strong> annually, while maintaining a current account mix in the range of 36\u201338%<\/strong>. The bank continues to operate with a high CASA ratio of 89%, reflecting a stable and low-cost funding base.<\/p>\n\n\n\n

They highlighted that around 85%<\/strong> of the investment portfolio is allocated to floating-rate instruments, positioning the bank to benefit from potential policy rate increases indicated by secondary market yields. Efficiency improvements are expected through controlled expansion and lower marketing expenses, particularly in the remittance segment. On asset quality, management noted NPL pressures from the textile and steel sectors but emphasized a conservative approach with restructured and collateralized exposures. Dividend payouts remain dependent on profitability and shareholder approval.<\/p>\n\n\n\n

What did the numbers say?<\/h2>\n\n\n\n

Bank Al Habib reported standalone EPS of Rs27.57 for CY25, reflecting a 23%<\/strong> year-on-year decline. The bank declared a dividend of Rs 15 per share, while the market price stood at Rs 173.69, translating into a market capitalization of Rs 193 billion. The stock traded within a one-year range of Rs217.13 to Rs130.25, with an estimated free float of 778 million shares, representing 70%<\/strong> of total shares.<\/p>\n\n\n\n

Deposits grew 14.1%<\/strong> year on year, supported by a strong CASA ratio of 89%<\/strong>, including 36%<\/strong> current accounts, 39%<\/strong> savings accounts, and 14%<\/strong> remunerative current accounts. The investment book is heavily skewed toward floating PIBs at 70%<\/strong> and floating Sukuk at 15%<\/strong>, with smaller allocations to fixed PIBs and T-bills. Advances are concentrated in corporate lending at 76%<\/strong>, followed by commodity financing, SMEs, and agriculture, while the NPL ratio stands at approximately 4.26%<\/strong>.<\/p>\n\n\n\n

What should investors expect going forward?<\/h2>\n\n\n\n

Investors should expect continued balance sheet expansion driven by targeted deposit growth of 16\u201317%<\/strong> and incremental branch additions. The bank\u2019s positioning in floating-rate instruments suggests sensitivity to interest rate movements, with potential upside linked to policy rate increases. The funding mix is expected to remain stable, supported by a high CASA ratio and consistent deposit composition targets.<\/p>\n\n\n\n

Operationally, efficiency gains are anticipated through cost control measures, particularly reduced marketing expenses in remittances. Trade volumes remain significant, with over 12% <\/strong>market share and strong activity across imports, exports, and remittances. Risk outlook remains tied to sector-specific stress in textiles and steel, although management maintains a cautious stance. Dividend expectations will remain variable, contingent on earnings performance and shareholder decisions.<\/p>\n\n\n\n

What are analysts saying about X stock?<\/h2>\n\n\n\n

According to the KSEStocks Database, BAHL<\/a><\/strong> is covered by 10 analysts in Pakistan and they have an average price rating of PKR 226<\/strong>.<\/p>\n\n\n\n

This average price target<\/strong> suggests an upside of 29.4%<\/strong> from the last close of PKR 174.81<\/strong>.<\/p>\n\n\n\n

According to EPS estimates<\/strong> from 13 different brokers, BAHL<\/a><\/strong> has an average 2026 EPS expectation of 30.2<\/strong>. This suggests the stock is now trading at a forward PE of 5.9<\/strong>. <\/p>\n\n\n\n

Why do we compile research firms’ forecasts? Broker research is fragmented across different houses. Compiling it in one place helps investors see consensus, identify divergence, and think independently rather than relying on a single view.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Ticker: Bank Al Habib Limited BAHLAnalyst Briefing Date: April 10, 2026 This article summarizes Bank Al Habib Limited BAHL\u2019s latest corporate briefing, focusing on CY25 financial performance, deposit and lending mix, investment positioning, and forward outlook on growth, efficiency, and risk management. It captures key operating metrics alongside management\u2019s expectations for deposits, margins, and expansion […]<\/p>\n","protected":false},"author":11,"featured_media":6465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[117],"class_list":["post-12612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-psx-blog","tag-bahl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/BAHL-STOCK-PSX.png",712,445,false],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/BAHL-STOCK-PSX.png",463,289,false],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/BAHL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/BAHL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/12612","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\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=12612"}],"version-history":[{"count":4,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/12612\/revisions"}],"predecessor-version":[{"id":12652,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/12612\/revisions\/12652"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6465"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=12612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=12612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=12612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}