FABL Q1CY26 profit dips 2% to Rs5.3bn

April 23, 2026 (MLN): Faysal Bank Limited (PSX: FABL) reported a slight 2% dip in its consolidated profit after taxation for the first quarter ended March 31, 2026, recording Rs5.33bn compared to Rs5.41bn in the corresponding period last year.

Consequently, the bank's basic and diluted earnings per share (EPS) edged down to Rs3.51 from Rs3.56 in Q1 2025.

The bank also declared dividend at Rs1.5 per share.

The bank experienced a contraction in its core lending margins. Profit/return earned fell by 9% year-on-year to Rs38.14bn, while the cost of funds (profit/return expensed) also dropped by 9% to Rs22.53bn.

As a result, the net profit/return (net interest income) contracted by 9% to Rs15.60bn from Rs17.22bn in the prior year.

However, this decline in core income was completely overshadowed by a massive surge in non-funded income.

Total other income skyrocketed by 70% to Rs9.85bn.

 This exceptional growth was primarily driven by a staggering spike in net gains on securities, which jumped to Rs3.33bn from just Rs46.39m last year.

The bank also saw healthy boosts in dividend income to Rs151.33m, foreign exchange income (up 14% to Rs1.97bn), and fee/commission income (up 13% to Rs4.45bn).

Bolstered by these non-core gains, total income grew by 11% to Rs25.45bn. Operating overheads rose at a moderate pace of 7%, with total other expenses settling at Rs14.86bn. This strong top-line performance pushed the profit before credit loss allowance up by 16% to Rs10.68bn.

The lack of heavy provisioning reversals dragged the profit before taxation down by 4% to Rs11.04bn. A 6% lower taxation expense of Rs5.71bn helped cushion the blow, allowing the bank to contain its final net profit decline to just 2% for the quarter.

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