Faysal Bank Limited reported consolidated profit after taxation of Rs10.35 billion for the half year ended June 30, 2026, remaining broadly stable compared with Rs10.42 billion recorded during the corresponding period last year. The bank’s profit declined marginally by 0.7% year on year, while basic and diluted earnings per share stood at Rs6.82 compared with Rs6.87 in the first half of 2025. Alongside the financial results, Faysal Bank’s Board of Directors declared an interim cash dividend of Rs1.50 per share for the six-month period. The relatively stable bottom-line performance came despite a decline in core net profit or return, as stronger non-markup income provided significant support to overall earnings. The bank’s total income increased by 7.8% to Rs50.31 billion from Rs46.65 billion in the corresponding period, reflecting higher fee and commission income, foreign exchange earnings, dividend income and a substantial increase in gains on securities.
Faysal Bank’s core profit or return earned during the first half of 2026 declined by 3.5% to Rs81.04 billion from Rs84 billion in the same period last year, while profit or return expensed decreased by 3.2% to Rs47.95 billion from Rs49.55 billion. As a result, net profit or return fell by 3.9% to Rs33.09 billion from Rs34.45 billion. The decline in the core income stream was offset by a significant improvement in total other income, which rose 41.1% to Rs17.22 billion from Rs12.20 billion. Gain on securities was a major contributor to this increase, climbing more than fifteenfold to Rs3.37 billion from Rs210.08 million. Foreign exchange income also increased by 21.3% to Rs4.52 billion from Rs3.73 billion, while dividend income rose 88.9% to Rs385.54 million from Rs204.14 million. Fee and commission income recorded a 10.1% increase to Rs8.92 billion from Rs8.10 billion. Other income also more than doubled to Rs271.47 million from Rs132.55 million, although the bank recorded a net loss on derecognition of financial assets at amortised cost of Rs247.88 million compared with Rs165.26 million previously.
The improvement in income was accompanied by higher operating expenses as Faysal Bank continued to bear increased costs associated with its business operations. Operating expenses increased by 8.6% to Rs29.64 billion from Rs27.29 billion in the first half of 2025. Workers’ Welfare Fund expenses were broadly stable at Rs448.52 million compared with Rs444.37 million, while other charges declined by 43.4% to Rs2.40 million from Rs4.23 million. As a result, total other expenses increased by 8.5% to Rs30.09 billion from Rs27.74 billion. Despite the rise in expenses, the bank benefited from stronger contributions from associates. The share of profit from associates increased by 29.1% to Rs161.25 million from Rs124.88 million. This helped profit before credit loss allowance increase by 7.1% to Rs20.38 billion from Rs19.03 billion. The improvement at this stage of the income statement indicates that higher non-markup income was sufficient to more than offset the decline in net profit or return and the increase in operating costs.
The position changed below the pre-provision line as the credit loss allowance reversal recorded during the current period was substantially smaller than the amount recognised in the previous year. Faysal Bank recorded a net reversal of credit loss allowance and write-offs of Rs697.55 million during the six months ended June 30, 2026, compared with a much larger reversal of Rs3.51 billion in the corresponding period last year. The 80.2% decline in the reversal resulted in additional pressure on profit before taxation, which fell 6.5% to Rs21.07 billion from Rs22.55 billion. The lower pre-tax earnings were partly offset by a reduction in the bank’s taxation expense. Taxation declined by 11.6% to Rs10.72 billion from Rs12.12 billion, providing a meaningful cushion against the decline in profit before taxation. After accounting for the lower tax charge, Faysal Bank reported profit after taxation of Rs10.35 billion, only slightly below the Rs10.42 billion recorded a year earlier. The resulting basic and diluted earnings per share of Rs6.82 represented a 0.7% decline from Rs6.87 in the first half of 2025.
Faysal Bank’s first-half results therefore reflect a relatively stable earnings position, supported by a substantial expansion in non-markup income despite pressure on core profit or return and a significantly smaller credit loss reversal. The 41.1% increase in total other income was particularly important to the bank’s performance, with gains on securities, foreign exchange income, dividend income and fee and commission income all recording notable increases. At the same time, operating expenses increased by 8.6%, while the share of profit from associates provided an additional contribution to earnings. The bank’s profit before taxation declined because the credit loss reversal was considerably lower than the previous year’s unusually high level, but the 11.6% reduction in taxation helped contain the impact on the final profit figure. With profit after taxation remaining close to the previous year’s level, Faysal Bank’s Board also declared an interim cash dividend of Rs1.50 per share. The financial results show that the bank maintained broadly stable profitability during the six-month period despite changes across its core income, other income, expenses, provisions and taxation.
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