JS Bank profit falls 11% to Rs4.72bn in 1HCY26

August 25, 2026 (MLN): JS Bank Limited (PSX: JSBL) recorded an 11% decline in its consolidated net profit for the half year ended June 30, 2026, with profit after taxation falling to Rs4.72bn from Rs5.32bn in the corresponding period last year.

Showing this softer bottom-line, the bank's basic and diluted earnings per share (EPS) rose marginally to Rs2.03 from Rs1.99 in 1HFY25.

Total income declined 8% year-on-year to Rs41.35bn from Rs44.95bn in the prior period.

On the core banking spread, mark-up/return/interest/profit earned declined 13% to Rs68.37bn, while mark-up/return/interest/profit expensed fell at a faster pace of 22% to Rs35.88bn, keeping net mark-up/interest income broadly stable with a marginal decline of less than 1% to Rs32.49bn from Rs32.58bn.

The more pronounced pressure came from non-markup/interest income, which fell 28% to Rs8.86bn from Rs12.37bn. Fee and commission income grew 10% to Rs6.07bn, foreign exchange income rose 48% to Rs2.06bn, and other income nearly doubled to Rs219.55m from Rs111.97m.

However, these gains were overwhelmed by a 93% collapse in net gain on securities to Rs303.01m from Rs4.63bn the single most damaging development of the period.

Income from derivatives swung to a loss of Rs7.22m against an income of Rs256.89m last year, dividend income declined 24% to Rs258.70m, and share of profit from associates swung to a loss of Rs41.52m from a profit of Rs111.995m.

On the expenditure side, operating expenses rose 10% to Rs33.25bn. Workers' Welfare Fund declined 11% to Rs235.56m, while other charges collapsed 95% to Rs15.00m from Rs294.14m.

Total non-markup/interest expenses rose 9% to Rs33.50bn from Rs30.74bn.

Profit before credit loss allowance fell sharply by 45% to Rs7.84bn from Rs14.21bn. The decisive development that cushioned the bottom-line was a significant swing in the credit loss allowance line.

Against a net charge of Rs2.28bn in the prior period, the bank recorded a net reversal of Rs2.74bn in the current period a turnaround that substantially absorbed the decline in core earnings and limited profit before taxation to an 11% decline at Rs10.59bn from Rs11.93bn.

Taxation declined 11% to Rs5.86bn from Rs6.61bn, falling in near-perfect proportion to the pre-tax decline, resulting in an 11% fall in profit after taxation for the half year.

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