Faysal Bank Limited (FBL) has approved the issuance of Tier-II capital in the form of Islamic Sukuk worth Rs 7 billion, as part of its strategy to reinforce its capital structure and ensure continued compliance with regulatory capital adequacy requirements. The decision was announced alongside the bank’s year-end financial results for 2025.
According to the bank’s disclosure, the Sukuk will include a green-shoe option of up to PKR 2 billion, allowing the total issuance size to increase depending on investor demand. The instrument will be issued through private placement to qualified institutional buyers and remains subject to necessary regulatory approvals. The proceeds are intended to support the bank’s Tier-II capital base, enhancing its ability to manage risk-weighted assets and sustain growth in a competitive banking landscape.
The move signals a continued reliance on Shariah-compliant capital market instruments to optimize balance sheet strength while aligning with Pakistan’s expanding Islamic finance ecosystem. By opting for a Tier-II Sukuk structure, Faysal Bank aims to bolster its supplementary capital buffer without diluting shareholder equity, positioning itself to navigate regulatory thresholds and future expansion plans.
Alongside the capital announcement, the bank declared a final dividend of Rs 2 per share for the year ended December 31, 2025. This comes in addition to the 15 percent interim dividend already distributed during the year, bringing the total dividend payout for 2025 to 20 percent. The dividend decision reflects the board’s confidence in the bank’s earnings resilience despite a slight year-on-year decline in profitability.
For the financial year 2025, Faysal Bank reported a net profit of Rs 21.7 billion, marginally lower than the Rs 23 billion recorded in 2024. Earnings per share stood at Rs 14.30 compared to Rs 15.17 in the previous year. Despite the modest dip in bottom-line performance, the bank demonstrated balance sheet expansion and revenue growth across key segments.
Total assets increased by 13.6 percent, rising to Rs 1.77 trillion from Rs 1.56 trillion in 2024. The asset growth underscores continued business expansion, supported by deposit mobilization and financing activities. Liabilities grew by 11.6 percent, primarily driven by higher deposits and borrowings, while share capital remained unchanged at Rs 15.2 billion.
The bank’s total income reached Rs 99.2 billion in 2025, reflecting a 12.9 percent increase compared to Rs 87.6 billion in the preceding year. Growth was largely attributed to higher fee and commission income as well as improved foreign exchange earnings. These non-markup income streams provided diversification benefits amid evolving market conditions. Although operating expenses increased, including provisions for credit losses, the bank maintained profitability through disciplined cost management and revenue expansion.
The approval of the Tier-II Sukuk indicates a forward-looking capital strategy, reinforcing Faysal Bank’s financial stability at a time when regulatory compliance and capital adequacy remain central to banking sector performance. As financial institutions continue to adapt to shifting economic conditions, capital optimization through Shariah-compliant instruments is emerging as a strategic lever for sustainable growth.
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