Samba Bank Limited (PSX: SBL) announced a net profit of Rs727.2 million for the fiscal year ending December 31, 2025, marking a modest 4% increase compared to Rs699.3 million recorded in FY2024. The bank’s earnings per share (EPS) also rose to Rs0.72 from Rs0.69 in the previous year, reflecting steady growth in profitability despite significant pressures on interest income.
The bank’s mark-up, return, or interest earned dropped 23% year-on-year to Rs22.11 billion from Rs28.72 billion in FY2024, reflecting the impact of declining policy rates and lower asset yields. Similarly, interest expensed declined by 23% to Rs16.52 billion from Rs21.39 billion, which helped mitigate some of the pressure on net interest income. As a result, net mark-up or return or interest income stood at Rs5.59 billion, down 24% from Rs7.33 billion last year.
Non-mark-up or interest income provided a partial offset, rising 26% to Rs2.13 billion from Rs1.69 billion in FY2024. Fee and commission income increased 13% to Rs412.1 million from Rs365.1 million, while dividend income declined 13% to Rs60.1 million. Foreign exchange income fell 23% to Rs779.3 million from Rs1.01 billion, reflecting global currency volatility. However, a significant gain on securities contributed Rs808.1 million, up nearly threefold from Rs212.3 million, and other income surged 2.2 times to Rs68.8 million from Rs31 million, driving overall non-interest income growth.
Total income for the year declined 14% to Rs7.72 billion from Rs9.01 billion in FY2024. On the expense side, Samba Bank maintained disciplined cost management, with total non-mark-up or interest expenses rising only 3% to Rs5.52 billion from Rs5.35 billion. Operating expenses increased 4% to Rs5.49 billion amid modest business expansion, while the Workers’ Welfare Fund saw a 44% decline to Rs31.1 million. Other charges increased 18% to Rs330,000, reflecting minimal operational adjustments.
Profit before taxation remained largely flat at Rs1.56 billion, compared to Rs1.55 billion in FY2024. Taxation expenses fell 3% to Rs828.6 million from Rs850.4 million, allowing the bank to convert its pre-tax performance into a 4% net profit growth.
The bank’s financial results underscore its ability to offset declining interest income through strategic gains on securities and careful management of non-interest expenses. Analysts noted that Samba Bank’s approach of leveraging non-mark-up income sources, including securities gains and fees, has helped stabilize profitability even in a challenging interest rate environment.
While interest-sensitive revenue streams faced pressure, the bank’s disciplined expense management, selective investment gains, and growth in fee income have ensured a steady bottom line. Moving forward, maintaining this balance between interest and non-interest income will be critical for sustaining growth and navigating macroeconomic fluctuations in Pakistan’s banking sector.
Samba Bank’s FY2025 performance highlights the resilience of mid-tier banks in Pakistan, demonstrating that focused cost control and diversified revenue strategies can produce incremental profitability, even in periods of declining interest margins and volatile foreign exchange markets.
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