JS Bank faces profit compression in 1HFY25 of 45%

August 22, 2025 (MLN): JS Bank Limited (PSX: JSBL) released its financial results for the half-year ended June 30, 2025, reporting a profit after tax of Rs5.32bn, down 45.1% compared to Rs9.7bn in the same period last year. Earnings per share also dropped to Rs1.99 from Rs3.86 in 1HFY24.

The bank’s mark-up / interest income fell sharply by 30.2% to Rs78.27bn, while interest expense dropped by 40.3% to Rs45.83bn, resulting in a net interest income of Rs32.45bn, down 8.3% from Rs35.38bn a year earlier.

On the non-mark-up side, fee, commission & brokerage income rose by 37.6% to Rs5.66bn, and dividend income increased 17.6% to Rs340m. However, foreign exchange income dropped significantly by 61.4% to Rs1.39bn, compared to Rs3.6bn last year.

In contrast, the bank booked a gain on securities (net) of Rs4.63bn, reflecting a sharp  increase over Rs1.21bn in 1HFY24.

Total non-mark-up income surged by 40.8% to Rs12.51bn, lifting total income for the period to Rs44.95bn, compared to Rs44.26bn in 1HFY24 a modest increase of 1.6%.

On the expense front, non-mark-up expenses rose 26.8% to Rs30.74bn, with operating expenses climbing to Rs30.19bn, a 26.7% increase YoY.

Workers’ welfare fund declined by 33.6% to Rs264m, while other charges jumped significantly to Rs294m.

As a result, profit before credit loss and taxation came in at Rs14.2bn, down from Rs20bn in 1HFY24. Credit losses and write-offs rose to Rs2.28bn, up 79.8% from Rs1.27bn last year.

After accounting for taxation of Rs6.6bn, down 27% YoY, the bank’s profit after tax stood at Rs5.3bn, a decline of nearly half from the previous year.

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