Faysal Bank Limited (FBL) has reported a consolidated profit after taxation of Rs5.33 billion for the quarter ended March 31, 2026, compared with Rs5.41 billion in the same period last year. The latest results show a broadly stable earnings performance despite changes in financing income, expenses and credit-loss provisions.

According to the bank’s financial statements, consolidated profit after taxation stood at Rs5.326 billion, down slightly from Rs5.409 billion in the first quarter of 2025. Earnings per share also declined to Rs3.51 from Rs3.56 a year earlier.

Income remains resilient

Faysal Bank recorded consolidated profit/return earned of Rs38.14 billion during the quarter, compared with Rs42.11 billion in the corresponding period of 2025. Profit/return expensed also declined to Rs22.53 billion from Rs24.89 billion.

As a result, net profit/return came in at Rs15.60 billion, compared with Rs17.22 billion in the same quarter last year.

The bank’s other income provided some support. Total other income increased to approximately Rs9.85 billion, up from Rs8.50 billion in the first quarter of 2025. Fee and commission income rose to Rs4.45 billion from Rs3.95 billion, while income from foreign exchange activities increased to around Rs1.97 billion.

Operating expenses increase

The bank’s performance was also affected by higher operating expenses. Consolidated operating expenses increased to Rs14.62 billion, compared with Rs13.66 billion a year earlier.

Despite the rise in expenses, the bank reported a profit before taxation of Rs11.04 billion, compared with Rs11.49 billion in the first quarter of 2025.

A notable improvement came from credit-loss provisions. The bank reported a reversal of credit-loss allowance and write-offs of Rs360.94 million, compared with a charge of Rs2.31 billion in the same quarter last year. This helped offset some pressure on overall earnings.

Balance sheet remains substantial

Faysal Bank’s consolidated assets stood at approximately Rs1.725 trillion as of March 31, 2026, compared with Rs1.777 trillion at the end of December 2025.

Islamic financing and related assets amounted to approximately Rs775.55 billion, while investments stood at around Rs667.18 billion.

Deposits and other accounts were reported at approximately Rs1.328 trillion, compared with Rs1.427 trillion at the end of 2025. The bank’s total equity attributable to its shareholders stood at approximately Rs113.84 billion at the end of the quarter.

Strong operating cash generation

Faysal Bank generated Rs47.69 billion in net cash from operating activities during the quarter, compared with Rs32.64 billion in the same period of 2025.

However, investing activities resulted in a net cash outflow of approximately Rs48.19 billion, largely reflecting investments and other investing movements. After financing activities and other adjustments, cash and cash equivalents stood at around Rs109.30 billion at March 31, 2026.

Rs1.50 per share interim dividend announced

Alongside the financial results, Faysal Bank announced an interim cash dividend of Rs1.50 per share, equivalent to 15% on shares with a face value of Rs10 each.

The bank also stated that there would be no bonus shares or right shares and no other entitlement or corporate action associated with the announcement. The share transfer books were scheduled to remain closed from May 7 to May 9, 2026, both days inclusive.

Outlook

Faysal Bank’s first-quarter results present a picture of relatively stable profitability, with higher other income and a significant improvement in credit-loss provisions helping to cushion lower net return income and increased operating expenses.

While consolidated earnings were slightly below the level recorded a year earlier, the bank continued to maintain a sizeable balance sheet and generated strong operating cash flows. The Rs1.50 per share interim dividend also provides a positive signal for shareholders as the bank continues to expand its Islamic banking operations.