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Faysal Bank Posts 23% Decline in Half-Year Profit, Announces Rs1.5 Dividend

Karachi, August 28, 2025:

Faysal Bank Limited (PSX: FABL) reported a profit after tax (PAT) of Rs10.42 billion for the half year ended June 30, 2025, marking a 23.13% drop from Rs13.56 billion in the same period last year.

The bank’s earnings per share (EPS) also fell to Rs6.87 from Rs8.94, reflecting a 23.15% year-on-year decline.

To reward shareholders, the bank declared an interim cash dividend of Rs1.5 per share (15%), in addition to the 15% interim dividend already disbursed.

Key Financial Highlights

·        Total income: Rs46.65bn, down 3.40% YoY

·        Net profit/return: Rs34.45bn, down 10.52%

·        Other income: Rs12.20bn, up 24.59%

o   Fee & commission income ↑ 34.68%

o   FX income ↑ 34.11%

o   Dividend income ↓ 8.48%

o   Gain on securities ↓ 67.14%

o   Other income ↓ 57.19%

On the expense side, operating expenses surged 22.06% to Rs27.29bn, while Workers’ Welfare Fund expense dropped 17.22% to Rs444.37mn. Other charges also contracted sharply by 88.52%.

Profitability Snapshot

·        Profit before credit loss allowance: Rs19.03bn, down 25.47%

·        Reversal of credit loss allowance & write-offs: Rs3.51bn (vs Rs798mn in 2024)

·        Profit before tax: Rs22.55bn, down 14.39% YoY

·        Taxation: Rs12.12bn, down 5.11%

Despite pressures on income and rising costs, the higher credit loss reversal provided some cushion to earnings.


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