Samba Bank profit surges 48% in 1HCY26

August 20, 2026 (MLN): Samba Bank Limited (PSX: SBL) recorded a 48% increase in its net profit for the half year ended June 30, 2026, with profit after taxation climbing to Rs273.67m from Rs185.53m in the corresponding period last year.

Showing this healthy bottom-line growth, the bank's basic and diluted earnings per share (EPS) expanded to Rs0.27 from Rs0.18 in 1HFY25.

Total income declined 21% year-on-year to Rs3.02bn from Rs3.83bn in the prior period.

On the core banking spread, mark-up/return/interest earned grew modestly by 3% to Rs11.07bn, but mark-up/return/interest expense rose at a faster pace of 13% to Rs8.85bn, squeezing net mark-up/interest income by 25% to Rs2.22bn from Rs2.94bn the primary headwind of the period.

Non-markup/interest income also softened, declining 9% to Rs804.64m from Rs884.79m.

Fee and commission income grew 25% to Rs219.23m, dividend income rose 37% to Rs42.80m, and gain on securities increased 13% to Rs328.55m.

However, these gains were offset by a 45% decline in foreign exchange income to Rs190.87m and a 44% drop in other income to Rs23.19m.

On the expenditure side, operating expenses rose 6% to Rs2.69bn, while Workers' Welfare Fund declined 23% to Rs11.32m and other charges were virtually eliminated, falling 98% to just Rs5,000. Total non-markup/interest expenses rose 6% to Rs2.70bn.

Profit before credit loss allowance and provisions fell sharply by 75% to Rs326.52m from Rs1.29bn. The critical catalyst that rescued the bottom-line was a decisive swing in the provisions line.

Against a net charge of Rs883.53m in the prior period, the bank recorded a net reversal of Rs228.23m in the current period a turnaround that more than compensated for the core income compression and pushed profit before taxation up 37% to Rs554.75m from Rs405.20m.

Taxation rose 28% to Rs281.08m from Rs219.68m, though the proportional increase was smaller than pre-tax profit growth, allowing profit after taxation to rise 48% for the half year.

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