Faysal Bank Limited (PSX: FABL) has reported a consolidated profit after tax of Rs15.55 billion for the nine months ended September 30, 2025, marking a 24 percent decline from Rs20.35 billion recorded in the same period last year. Despite the dip in profitability, the bank announced a cash dividend of Rs1.50 per share, reflecting its consistent approach to delivering shareholder value amid evolving economic and regulatory challenges.
According to the financial statement, the bank’s total income for the period stood at Rs72.51 billion, slightly down by 2 percent compared to Rs73.97 billion in 9MFY24. The decline was primarily attributed to lower interest margins as profit earned dropped by 29 percent to Rs124.91 billion, while profit expensed also fell sharply by 38 percent to Rs72.81 billion. Consequently, the net profit or return declined by 13 percent to Rs52.11 billion.
On the non-markup side, Faysal Bank demonstrated resilience and adaptability, posting a significant 48 percent growth in total other income to Rs20.40 billion, up from Rs13.75 billion last year. This surge was largely driven by a more than threefold increase in gains on securities, which rose to Rs2.54 billion, and a 72 percent jump in foreign exchange income, which reached Rs5.87 billion. Fee and commission income also expanded by 30 percent to Rs11.74 billion, reflecting strong performance across digital transactions, trade services, and consumer banking channels.
However, the gains in other income components were offset by an 8 percent decline in dividend income and a 48 percent drop in miscellaneous income, as the bank continued to operate in a cautious environment marked by fluctuating interest rates and slower market activity.
Faysal Bank’s operating expenses rose by 21 percent to Rs42.45 billion due to inflationary pressures, branch network expansion, and ongoing investments in technology infrastructure. Total other expenses reached Rs43.20 billion, representing a 20 percent increase compared to the same period last year. Despite these cost escalations, the bank’s strategic focus on asset quality and risk management helped maintain a stable operational foundation.
A key highlight in the bank’s performance was the notable improvement in asset quality, which resulted in a substantial net reversal of credit loss allowances and write-offs amounting to Rs4.20 billion. This figure marked a 209 percent increase from Rs1.36 billion last year, signaling effective portfolio management and lower credit impairment charges during the period.
Profit before taxation stood at Rs33.70 billion, down 15 percent from Rs39.55 billion last year, while taxation expenses decreased by 6 percent to Rs18.15 billion. After tax, the bank’s net profit settled at Rs15.55 billion, translating to earnings per share of Rs10.25 compared to Rs13.41 in 9MFY24.
The decline in earnings was largely influenced by a higher effective corporate tax rate implemented earlier in the year, which placed pressure on bottom-line results across the banking sector. Nevertheless, Faysal Bank’s ability to sustain profitability and announce a dividend payout reflects its financial strength and operational stability in a tightening market environment.
With a continued focus on digital transformation, branch expansion, and service innovation, Faysal Bank remains positioned to strengthen its market presence and deliver consistent returns to stakeholders. The bank’s strategic shift towards a fully Islamic banking model also continues to enhance its competitive edge in Pakistan’s evolving financial landscape.
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