August 06, 2026 (MLN): Faysal Bank Limited (PSX: FABL) reported a virtually flat consolidated net profit of Rs10.35bn for the half-year ended June 30, 2026 (1HCY26), dipping slightly by 0.7% compared to Rs10.42bn in the corresponding period last year.
Alongside the financial results, the bank announced an interim cash dividend of Rs1.50 per share.
Reflecting this stable bottom-line trajectory, the bank's basic and diluted earnings per share (EPS) stood at Rs6.82 for the half-year, compared to Rs6.87 in 1HCY25.
The bank's performance was underpinned by a massive 41% surge in non-markup income, which effectively cushioned a mild contraction in core net profit/return.
Net profit/return earned fell by 4% year-on-year to Rs33.09bn (down from Rs34.45bn).
However, total other income soared to Rs17.22bn from Rs12.20bn in 1HCY25, spearheaded by a multi-fold jump in gain on securities, a 21% rise in foreign exchange income (Rs4.52bn), and an 89% surge in dividend income (Rs385.54m).
Fee and commission income also grew by 10% to Rs8.92bn. Consequently, total income expanded by 8% to reach Rs50.31bn.
On the expense front, operating costs grew in line with business expansion.
Total other expenses rose by 8% to Rs30.09bn, driven by a 9% increase in operating expenses (Rs29.64bn).
Supported by a 29% increase in the share of profit from associates (Rs161.25m), the profit before credit loss allowance rose by 7% to Rs20.38bn.
Below the pre-provision line, FABL recorded a net credit loss allowance reversal of Rs697.55m. While positive, this was substantially lower than the massive Rs3.51bn credit loss reversal booked in 1HCY25, causing the profit before taxation to decline by 7% to Rs21.07bn.
The impact of reduced pre-tax earnings was moderated by a 12% lower taxation charge of Rs10.72bn (down from Rs12.12bn in 1HCY25).
Supported by this lighter tax outlay, Faysal Bank Limited securely closed the six-month period with its net profit maintained at Rs10.35bn.
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STATEMENT OF PROFIT OR LOSS FOR THE HALF YEAR ENDED JUNE 30, 2026 (Rs.000) |
|||
|
Description |
2026 |
2025 |
change % |
|
Profit / return earned |
81,042,004 |
83,998,604 |
-3.5% |
|
Profit / return expensed |
(47,949,869) |
(49,547,479) |
-3.2% |
|
Net profit / return |
33,092,135 |
34,451,125 |
-3.9% |
|
Fee and commission income |
8,917,027 |
8,098,186 |
10.1% |
|
Dividend income |
385,544 |
204,144 |
88.9% |
|
Foreign exchange income |
4,522,177 |
3,727,506 |
21.3% |
|
Loss from derivatives |
(1,818) |
(6,171) |
-70.5% |
|
Gain on securities - net |
3,371,329 |
210,077 |
1504.8% |
|
Net loss on derecognition of financial assets at amortised cost |
(247,877) |
(165,256) |
50.0% |
|
Other income |
271,465 |
132,551 |
104.8% |
|
Total other income |
17,217,847 |
12,201,037 |
41.1% |
|
Total income |
50,309,982 |
46,652,162 |
7.8% |
|
Operating expenses |
(29,643,571) |
(27,294,276) |
8.6% |
|
Workers welfare fund |
(448,517) |
(444,366) |
0.9% |
|
Other charges |
(2,398) |
(4,234) |
-43.4% |
|
Total other expenses |
(30,094,486) |
(27,742,876) |
8.5% |
|
Share of profit of associates |
161,254 |
124,878 |
29.1% |
|
Profit before credit loss allowance |
20,376,750 |
19,034,164 |
7.1% |
|
Reversal of credit loss allowance and write offs - net |
697,545 |
3,514,221 |
-80.2% |
|
PROFIT BEFORE TAXATION |
21,074,295 |
22,548,385 |
-6.5% |
|
Taxation |
(10,722,481) |
(12,123,399) |
-11.6% |
|
PROFIT AFTER TAXATION |
10,351,814 |
10,424,986 |
-0.7% |
|
Basic and diluted earnings per share (Rupees) |
6.82 |
6.87 |
-0.7% |