Faysal Bank rated AA+ by PACRA amid Islamic banking surge

April 7, 2026 (MLN): The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term entity rating of Faysal Bank Limited (FABL) to AA+ from AA, showing the bank’s stable financial profile and strong performance in the Islamic banking segment.

The bank’s short-term rating remains A1+, with a stable outlook.

The upgrade recognizes FABL’s successful transition into a full-fledged Islamic bank, which has reinforced its emerging position as one of Pakistan’s leading Islamic financial institutions.

The Bank has strengthened its brand identity through innovative marketing campaigns, strategic partnerships, and a focus on digital transformation.

During FY25, FABL demonstrated significant growth in digital banking, processing transactions exceeding Rs3tr, while retail deposits surged past Rs1.4tr, up 36.7% from December 2024.

Current accounts grew by 31.3%, reaching Rs536bn, showing strong customer confidence and expansion in low-cost funding.

The bank maintained resilient topline momentum, reporting total income of Rs99bn in CY25, compared to Rs98bn the previous year.

Net spreads were recorded at Rs69.6bn, with non-funded income, including fees and foreign exchange, growing significantly.

Fee income rose by 22.7%, led by trade, card, and branch banking services, while FX income increased 46.7%.

FABL’s financing portfolio expanded by 37.6%, reaching Rs872bn, and its market share increased to 6.1%.

The bank’s Advance-to-Deposit Ratio (ADR) improved to 61.1%, outperforming the industry average of 37.5%.

Enhanced risk management practices reduced the infection ratio to 2.3%, and the Capital Adequacy Ratio (CAR) remained solid at 14.04%, comfortably above regulatory requirements.

Looking ahead, FABL plans to issue Tier-II capital to support growth and strengthen its balance sheet.

The bank’s focus on asset quality, operational efficiency, and digital innovation is expected to sustain strong performance and long-term value creation.

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