Faysal Bank half-year profit slips by 23%

August 28, 2025 (MLN): Faysal Bank Limited (PSX: FABL) reported a profit after tax of Rs10.42 billion for the half year ended June 30, 2025, reflecting a 23.13% decline compared to Rs13.56bn in the same period last year.

The bank has declared an interim cash dividend of Rs1.5 per share (15%), in addition to the 15% interim dividend already paid to shareholders.

The bank’s earnings per share (EPS) also dropped to Rs6.87 from Rs8.94, down 23.15% year-on-year.

Total income decreased by 3.40% to Rs46.65bn, compared to Rs48.29bn in the corresponding period of 2024.

Net profit/return fell 10.52% to Rs34.45bn, despite a 24.59% rise in total other income, which stood at Rs12.20bn.

The growth in other income was driven by a 34.68% increase in fee and commission income and a 34.11% rise in foreign exchange income.

However, dividend income declined 8.48% and gain on securities plunged 67.14%.

Other income also fell 57.19%.

On the expense side, operating expenses rose 22.06% to Rs27.29bn, while the Workers’ Welfare Fund expense decreased 17.22% to Rs444.37mn.

Other charges declined significantly by 88.52%.

Profit before credit loss allowance stood at Rs19.03bn, down 25.47% from last year.

However, reversal of credit loss allowance and write-offs amounted to Rs3.51bn, sharply higher than Rs798mn in the same period of 2024.

As a result, profit before taxation came in at Rs22.55bn, reflecting a 14.39% decline from Rs26.34bn a year earlier.

The bank paid Rs12.12bn in taxation, 5.11% lower than last year.

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