First Habib Modaraba

Company Overview

First Habib Modaraba (PSX: FHAM) is a Pakistani Islamic financial institution listed on the Pakistan Stock Exchange. It operates under the modaraba framework and is managed by Habib Metropolitan Modaraba Management Company (Private) Limited, a wholly owned subsidiary of Habib Metropolitan Bank Limited.

The institution provides financing and asset-based financial services using Islamic modes such as Ijarah, Musharaka and Murabaha. These structures support business and commercial financing while operating within the applicable Shariah framework.

Its business performance depends on the quality of its financing portfolio, customer demand, asset utilization, financing margins, recovery performance, funding arrangements and compliance with regulatory and Shariah requirements.

Official website: https://www.habibmodaraba.com/

Business Activities

First Habib Modaraba provides financial services through several Islamic financing arrangements.

• Ijarah: Leasing arrangements involving the use of assets in accordance with applicable Islamic-finance principles.
• Musharaka: Partnership-based financing arrangements in which parties participate under agreed terms.
• Murabaha: Cost-plus sale financing structured according to applicable Shariah requirements.
• Related financial services: Other permitted activities disclosed in the institution's financial statements and official corporate information.

Investors should read the latest annual report for the composition of the financing portfolio, asset quality, non-performing exposures, income sources, liquidity position and any changes in the institution's operating strategy.

Management and Ownership Structure

First Habib Modaraba is managed by Habib Metropolitan Modaraba Management Company (Private) Limited. The management company is a wholly owned subsidiary of Habib Metropolitan Bank Limited.

The modaraba's management, oversight and financial reporting operate within the applicable modaraba regulatory framework. Investors should distinguish the listed modaraba from its management company and its wider banking-group relationships; their financial statements and obligations are not interchangeable.

Official corporate profile: https://habibmodaraba.com/profile-pagemodule

Financial Performance

FY2026 Annual Results

According to the Pakistan Stock Exchange's standardized financial data, First Habib Modaraba reported the following results for the year ended June 30, 2026:

Financial measure	FY2026	FY2025
Total income	Rs. 5.078bn	Rs. 5.211bn
Profit after tax	Rs. 747.92m	Rs. 901.50m
Earnings per certificate	Rs. 6.75	Rs. 8.13

Total income declined by approximately 2.5% year over year, while profit after tax decreased by approximately 17.0%. Earnings per certificate also declined from Rs. 8.13 to Rs. 6.75.

These results indicate lower reported earnings in FY2026 despite total income remaining relatively close to the previous year's level. Investors should review the full annual report to identify the effect of financing income, operating expenses, impairment provisions, taxation and other financial-statement items.

What Investors Should Examine

Financing portfolio: Review the distribution of financing across Ijarah, Musharaka, Murabaha and other permitted arrangements.

Asset quality: Examine overdue receivables, non-performing financing, impairment provisions and recovery trends.

Income sustainability: Assess whether income is recurring and supported by the institution's financing portfolio.

Liquidity: Review liquid assets, short-term obligations and the timing of cash receipts and payments.

Capital and reserves: Assess the institution's financial strength and its capacity to absorb losses.

Profitability: Compare total income, profit after tax and earnings per certificate over several reporting periods rather than relying on a single year.

Official financial reports: https://www.habibmodaraba.com/financial-statements

Shariah Compliance Status

First Habib Modaraba was listed as compliant in the PSX-KMI All Share Islamic Index review effective June 5, 2026, based on December 31, 2025 financial information.

The official screening notice reports:

Screening measure	Reported result
Debt-to-assets ratio	N/A
Non-compliant investments-to-assets ratio	N/A
Non-compliant income-to-revenue ratio	N/A
Illiquid assets-to-total-assets ratio	91.17%
Net liquid assets per certificate versus market price	Negative net-liquid-assets figure reported

For Islamic financial institutions, some standard screening ratios are not applicable in the same way as they are for ordinary operating companies. PSX's screening notice therefore reports selected measures for this category.

The reported screening classification is historical and should not be treated as a permanent guarantee of compliance. Investors should check the latest official PSX-KMI All Share Islamic Index list, the applicable methodology and any subsequent Shariah disclosures issued by First Habib Modaraba.

Official references:

• PSX company profile: https://dps.psx.com.pk/company/FHAM
• PSX Islamic indices: https://www.psx.com.pk/psx/product-and-services/indices
• Official PSX screening notice: https://dps.psx.com.pk/download/attachment/277332-1.pdf

Dividend and Shareholder Returns

For FY2026, the board recommended a final cash dividend of Rs. 2.25 per certificate. PSX subsequently published an announcement dated October 13, 2026, regarding electronic disbursement of the final cash dividend for the year ended June 30, 2026.

Investors should consult the official announcement for entitlement and payment details. A dividend paid in one financial year does not guarantee future distributions. Dividend analysis should also consider earnings, cash flows, reserves, liquidity and future financing requirements.

Official announcements: https://dps.psx.com.pk/company/FHAM

Important PSX Risk Warning Alert

The official PSX company page displays a Risk Warning Alert stating that First Habib Modaraba is in continuous violation of specified clauses, 5.11.1 or 5.11.2, and carries a risk of suspension of trading or delisting from the Exchange.

This is a material regulatory risk and should be prominently disclosed. Investors should review the latest official PSX notice and subsequent company disclosures to understand the nature of the issue, any remedial steps taken and the current status.

Shariah-screening eligibility does not remove exchange-listing, regulatory, liquidity, financial or business risks. The latest official PSX disclosures should take precedence over assumptions based on historical information.

Official reference: https://dps.psx.com.pk/company/FHAM

Key Factors Investors Should Monitor

Income and earnings: Track total income, profit after tax and earnings per certificate across multiple reporting periods.

Financing portfolio quality: Examine overdue payments, non-performing exposures and impairment provisions.

Liquidity management: Review the institution's ability to meet obligations as they fall due.

Financing demand: Monitor demand for Islamic leasing and business-financing arrangements.

Regulatory requirements: Assess compliance with modaraba regulations, PSX requirements and relevant Shariah governance standards.

Dividend sustainability: Compare cash distributions with earnings and the institution's financial position.

Shariah screening: Verify the latest official classification and applicable screening criteria.

Listing status: Review the PSX Risk Warning Alert and any subsequent notices.

Frequently Asked Questions

What is the PSX symbol for First Habib Modaraba?

Its Pakistan Stock Exchange symbol is FHAM.

What does First Habib Modaraba do?

It provides Islamic financial services, including Ijarah leasing, Musharaka, Murabaha financing and related activities.

Who manages First Habib Modaraba?

It is managed by Habib Metropolitan Modaraba Management Company (Private) Limited, a wholly owned subsidiary of Habib Metropolitan Bank Limited.

What were First Habib Modaraba's FY2026 results?

PSX standardized data reports total income of approximately Rs. 5.08 billion, profit after tax of Rs. 747.92 million and earnings per certificate of Rs. 6.75.

Did First Habib Modaraba pay a dividend for FY2026?

The board recommended a final cash dividend of Rs. 2.25 per certificate, and PSX published an electronic-disbursement announcement dated October 13, 2026.

Is First Habib Modaraba Shariah-compliant?

It was listed as compliant in the PSX-KMI All Share Islamic Index review effective June 5, 2026, based on December 2025 data. Investors should verify the latest official screening result.

Does First Habib Modaraba have a PSX risk warning?

Yes. The PSX company page displays a Risk Warning Alert concerning specified listing-regulation violations and the possibility of trading suspension or delisting. Investors should review the latest official notice before making an investment decision.

Official Sources

• Pakistan Stock Exchange company profile: https://dps.psx.com.pk/company/FHAM
• First Habib Modaraba official website: https://www.habibmodaraba.com/
• Financial statements and annual reports: https://www.habibmodaraba.com/financial-statements
• Corporate profile: https://habibmodaraba.com/profile-pagemodule
• PSX Islamic indices: https://www.psx.com.pk/psx/product-and-services/indices

This profile is intended for company research and investor education. Financial results, dividend announcements, screening classifications and regulatory alerts are period-specific. Verify current company disclosures, PSX notices and the latest Shariah-screening publications before making investment decisions.