KARACHI – Faysal Bank Limited (PSX: FABL) has announced its consolidated financial results for the nine months ended September 30, 2025, reporting a profit after tax of Rs. 15.55 billion. This represents a 24% decline from the Rs. 20.35 billion profit recorded in the same period last year.
Earnings per share (EPS) for the period stood at Rs. 10.25, down from Rs. 13.41 in 9MFY24.
Despite the decline in profitability, the bank declared a cash dividend of Rs. 1.50 per share for its shareholders.
The bank’s performance was a tale of two halves: a strong showing in non-core income was overwhelmed by rising costs and a contraction in its core interest income. Net profit/return income fell by 13% to Rs. 52.11 billion as the bank earned significantly lower returns on its assets.
Performance Highlights (Consolidated – Rs. in billion)
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Net Profit/Return Income: 52.11 (9MFY24: 60.23) | -13.0%
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Total Other Income: 20.40 (9MFY24: 13.75) | +48.4%
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Profit After Tax: 15.55 (9MFY24: 20.35) | -23.6%
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Earnings Per Share (EPS): Rs. 10.25 (9MFY24: Rs. 13.41) | -23.6%
A major bright spot was the 48% surge in total other income, which reached Rs. 20.40 billion. This was driven by a 230% jump in gains on securities and a 72% increase in foreign exchange income. Fee and commission income also grew by a healthy 30%.
However, these gains were offset by a 21% rise in operating expenses, which climbed to Rs. 42.45 billion, largely due to inflationary pressures and the cost of branch network expansion.
A significant positive development was a substantial improvement in asset quality. The bank recorded a net reversal of credit loss allowances of Rs. 4.20 billion, a more than threefold increase from the Rs. 1.36 billion reversal last year, providing a crucial cushion to its pre-tax profits.
After accounting for taxation of Rs. 18.15 billion, the net profit for the period was Rs. 15.55 billion. The results reflect a challenging operating environment for the bank’s core lending activities, even as its trading and fee-based services demonstrated robust growth.
