Habib BankKAR:HBL +0.09%59 Pretax Margin % is 37.40% as of Mar. 2026, which is 3% below its 10-year median of 38.61. GuruFocus rates KAR:HBL with a GF Score™ of 59/100 and a GF Value™ of ₨172.46 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,528 Banks companies, Habib Bank ranks better than 68.85% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Habib Bank's Pre-Tax Income for the
three
months ended in Mar. 2026 was ₨33,739 Mil. Habib Bank's Revenue for the
three
months ended in Mar. 2026 was ₨90,216 Mil. Therefore, Habib Bank's pretax margin for the quarter that ended in Mar. 2026 was 37.40%.
The historical rank and industry rank for Habib Bank's Pretax Margin % or its related term are showing as below:
KAR:HBL'
s Pretax Margin % Range Over the Past 10 Years
Min: 23.22 Med: 38.61 Max: 52.38
Current: 42.46
KAR:HBL's Pretax Margin % is ranked better than 68.85% of 1528
companies
in the Banks industry
Industry Median: 34.715
vs KAR:HBL: 42.46
Habib Bank (KAR:HBL) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Habib Bank Pretax Margin % Related Terms
Habib Bank Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Habib Bank's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Habib Bank's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Habib Bank Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Habib Bank's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Habib Bank's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Habib Bank (KAR:HBL) has a Pretax Margin % of 37.40% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Habib Bank and its competitors. This is near median its historical median of 38.61. Over the past decade, Habib Bank's Pretax Margin % has ranged from 23.22 to 52.38. According to the industry distribution chart, Habib Bank ranks #476 out of 1528 companies in the Banks industry, placing it in the top 31.2%.
Is Habib Bank's Pretax Margin % too high?
Habib Bank's current Pretax Margin % of 37.40% is near median its 10-year median of 38.61. Over the past 10 years, this metric has ranged from a low of 23.22 to a high of 52.38. The Banks industry median Pretax Margin % is 34.72. Habib Bank's value of 37.40% is 7.7% above this industry median. Based on the distribution chart, Habib Bank ranks #476 out of 1528 companies in the Banks industry, which is above the industry midpoint. Overall, Habib Bank has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Habib Bank's Pretax Margin % compare to competitors?
According to the Banks industry distribution chart, Habib Bank ranks #476 out of 1528 companies for Pretax Margin %. This puts Habib Bank in the upper half of its industry. The industry median Pretax Margin % is 34.72. Habib Bank's value of 37.40% is 7.7% above this benchmark. Historically, Habib Bank's own Pretax Margin % has ranged from 23.22 to 52.38 over the past decade. While the company's 10-year median is 38.61 vs. the industry median of 34.72, Habib Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Banks company?
The median Pretax Margin % among Banks companies is 34.72, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Habib Bank's current Pretax Margin % of 37.40% is 7.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Habib Bank and its competitors. For the Banks industry, the median Pretax Margin % is 34.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Habib Bank's current Pretax Margin % is 37.40%, which is near median its own 10-year median of 38.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Habib Bank stock overvalued right now?
Based on GuruFocus' analysis, Habib Bank (KAR:HBL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨172.46, compared to a current price of ₨305.91 — trading 77.4% above its estimated fair value. The current Pretax Margin % is 37.40%, which is near median its 10-year median of 38.61 and 7.7% above the Banks industry median of 34.72. Habib Bank's overall GF Score™ is 59/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Habib Bank (KAR:HBL), the current Pretax Margin % is 37.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Habib Bank (KAR:HBL) Overvalued in 2026?
Based on GuruFocus' analysis, Habib Bank stock appears to be overvalued.
The current stock price of ₨305.91 is trading 77.4% above its estimated GF Value™ of ₨172.46.
GuruFocus considers Habib Bank to be Significantly Overvalued.
Key valuation signals for KAR:HBL:
Pretax Margin %: 37.40% (near median its 10-year median of 38.61)
GF Value™: ₨172.46 vs. price of ₨305.91 (77.4% above fair value)
Industry Position: 7.7% above the Banks median (#476 of 1528)
No single metric tells the full story. See the KAR:HBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Habib Bank Ltd is engaged in commercial banking related services in Pakistan and overseas. The operating business segments are Retail banking; Consumer, SME and agriculture lending; Corporate, commercial and investment banking; International; Financial Institutions; Treasury; Branchless Banking; Asset Management, Microfinance; and Head Office / Others. The company operates in Pakistan, the Middle East & Africa, Asia, and Europe. The Retail banking segment derives the maximum revenue for the company.
59GF Score
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