KARACHI: Faysal Bank Limited (PSX: FABL) reported a profit after tax of Rs5.41 billion for the quarter ended March 31, 2025, down 18.15% from Rs6.61 billion in the same period last year. Earnings per share declined to Rs3.56 from Rs4.35. The bank also announced an interim cash dividend of Rs1.5 per share (15% of face value).
Total income dropped 3.57% year-on-year to Rs23.02 billion, largely due to an 8.51% decrease in net profit/return income, which stood at Rs17.22 billion. Nevertheless, other income rose 14.85% to Rs5.8 billion, buoyed by a 31.64% increase in fee and commission income and an 8.14% rise in foreign exchange earnings.
Operating expenses surged by 24.71% to Rs13.66 billion, contributing to an overall 23.75% rise in total expenses. Profit before credit loss allowance fell sharply to Rs9.18 billion, down 28% year-on-year. However, a significant reversal of credit loss provisions worth Rs2.31 billion helped offset some of the impact, pushing pre-tax profit to Rs11.49 billion—a 9.63% decline.
Taxation remained nearly flat at Rs6.08 billion. Meanwhile, the bank’s share of profit from associates declined by over 53%.
Faysal Bank, a mid-sized player in Pakistan’s banking sector, completed its transformation into a full-fledged Islamic bank in 2023—an industry milestone. For CY24, the bank posted record annual profits of Rs25.5 billion, with a focus on expanding digital offerings and consumer banking. Despite the earnings drop in Q1CY25, the bank’s solid fee-based income growth suggests underlying resilience, though rising administrative costs and margin compression remain key concerns.
