SBL 9MCY26 profit falls 63%

October 26, 2026 (MLN): Samba Bank Limited (PSX: SBL) reported a 63% decline in its net profit for the nine months ended September 30, 2026 (9MCY26), recording Rs174.03m compared to Rs472.40m in the corresponding period last year.

Reflecting this bottom-line compression, basic and diluted earnings per share (EPS) fell to Rs0.17, down from Rs0.47 in 9MCY25.

For the third quarter (Q3CY26) alone, the bank slipped into the red, posting a net loss of Rs99.64m (loss per share of Rs0.10) compared to a net profit of Rs286.88m (EPS of Rs0.28) in Q3CY25.

The primary catalyst behind the nine-month contraction was a 21% drop in net mark-up income alongside a 13% decline in non-mark-up income and an expansion in operating expenses.

Mark-up/return earned rose 3% to Rs17.09bn, but higher deposit and borrowing costs pushed mark-up expensed up 11% to Rs13.68bn. Consequently, net mark-up income fell to Rs3.40bn compared to Rs4.31bn in 9MCY25.

On the non-mark-up income front, foreign exchange income dropped 39% to Rs310.43m (down from Rs505.33m), gains on securities fell 5% to Rs519.92m, and other income contracted 42% to Rs24.20m.

These declines outpaced steady gains in fee and commission income (up 18% to Rs327.80m) and dividend income (up 12% to Rs45.35m). Total non-markup income settled at Rs1.23bn, causing total income to decline 19% to Rs4.63bn.

On the operational side, operating expenses rose 9% to Rs4.24bn, taking total non-markup expenses to Rs4.25bn.

This reduced profit before credit loss allowance by 79% to Rs376.59m. Although net credit loss allowances and write-offs dropped sharply to Rs16.42m (down 98% from Rs789.12m in 9MCY25), profit before taxation contracted 65% to Rs360.17m.

The bank recorded a reduced taxation expense of Rs186.14m for the nine-month period (down 66% from Rs552.71m in 9MCY25).

Hit by spread compression and a challenging third quarter, Samba Bank Limited closed the nine months with its net profit settling at Rs174.03m.

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