JSBL reports steep profit erosion in Q1CY26

April 29, 2026 (MLN): JS Bank Limited (PSX: JSBL) reported a 62.68% year-on-year contraction in profit after taxation for the three months ended March 31, 2026, recording Rs1.16bn compared to Rs3.10bn in the corresponding period last year.

The company's basic and diluted earnings per share (EPS) declined 62.71% to Rs0.44, down from Rs1.18 in Q1CY25, reflecting significant value erosion for shareholders during the period.

JSBL's net mark-up and interest income declined 9.28% to Rs15.21bn from Rs16.77bn, as mark-up earned contracted 20.45% to Rs32.70bn while mark-up expensed declined at a faster pace of 28.15% to Rs17.49bn.

Total non mark-up and interest income contracted 29.12% to Rs4.23bn from Rs5.97bn, primarily impacted by an 90.86% decline in gain on securities to Rs196.33m and a 29.08% drop in dividend income to Rs140.20m. Total income consequently declined 14.49% to Rs19.45bn from Rs22.74bn.

Operating expenses rose 13.12% to Rs16.59bn from Rs14.67bn, further compressing the income base. The combined effect resulted in profit before credit loss allowance declining sharply by 64.52% to Rs2.76bn from Rs7.79bn.

Credit loss allowance and write-offs, a charge of Rs615.13m in Q1CY26, compared to a net reversal of Rs301.49m in the prior year period, emerged as an additional drag on pre-tax earnings.

Profit before taxation consequently declined 54.88% to Rs3.38bn from Rs7.49bn.

Taxation moderated by 49.36% to Rs2.22bn from Rs4.39bn, partially cushioning the bottom-line impact.

After accounting for taxation, JS Bank Limited closed the quarter with a profit after taxation of Rs1.16bn, representing a 62.68% contraction over the Rs3.10bn reported in the corresponding period of last year.

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