Karachi, September 1, 2026: JS Bank Limited delivered a strong improvement in profitability during the first half of 2026, with its unconsolidated profit after tax (PAT) more than doubling to Rs3.199 billion, compared with Rs1.557 billion in the same period last year.

According to the bank’s half-year report for the period ended June 30, 2026, profit before tax rose to Rs6.640 billion, up 90.34% from Rs3.488 billion a year earlier. Earnings per share also increased to Rs1.56 from Rs0.76.

Deposits rise strongly

JS Bank’s balance sheet also expanded during the period. Total deposits reached Rs637.622 billion, compared with Rs543.502 billion at the end of December 2025, representing growth of 17.32%.

The bank highlighted a notable improvement in its deposit mix. Non-remunerative deposits increased by Rs37 billion, or 16%, year-on-year, lifting their share of total deposits to 43%. Period-end non-remunerative deposits reached a historic high of Rs271.560 billion.

Total assets stood at Rs759.278 billion, while investments climbed significantly to Rs419.785 billion from Rs278.028 billion at the end of 2025. Advances, meanwhile, stood at Rs221.933 billion.

Net interest income provides support

The bank’s net interest income increased 4.8% year-on-year to Rs14.627 billion, which management attributed primarily to an improved balance-sheet mix.

Non-markup income, however, declined to Rs4.966 billion from Rs7.409 billion a year earlier. The report said the decline was largely due to normalized realized capital gains compared with unusually high gains recorded in the previous period.

Non-markup expenses remained broadly controlled at Rs14.678 billion, compared with Rs14.609 billion in the corresponding period. The bank said previous-year costs had been affected by one-off technology and operating expenditures.

Credit costs turn positive

One of the major contributors to the improvement in profitability was the reversal of credit loss allowances. JS Bank reported a net reversal of Rs1.725 billion during the first half, compared with a net charge of Rs3.269 billion in the same period last year.

The bank also reported an improvement in its asset-quality indicators. Gross advances stood at Rs244.387 billion at June 30, down from Rs274.547 billion at December 31, 2025, while the infection ratio improved to 8.11% from 8.46%. Specific coverage increased to 77.8% from 77.3%.

TRG Pakistan shares add capital pressure

The report also highlighted the settlement of a large overdue exposure, following which JS Bank acquired additional listed shares of TRG Pakistan Limited through a pledge call. The bank’s holding in TRG Pakistan consequently rose above 10%.

While the acquisition resulted in the reversal of a 100% credit loss allowance, the shares carry a higher capital charge. Ongoing litigation also currently restricts the bank from transferring the acquired shares, temporarily adding to the capital requirement.

Rs4 billion Tier-2 capital issue completed

Another key development was JS Bank’s successful Rs4 billion Term Finance Certificate (TFC) issue. The bank had received Rs3.5 billion in subscriptions by June 30, while the issue was fully subscribed, including a Rs1 billion green-shoe option, during the first week of July.

The instruments are unsecured, privately placed, subordinated and subsequently listed, and qualify as Tier-2 capital.

Consolidated earnings remain resilient

At the consolidated level, JS Bank and its subsidiaries — including BankIslami Pakistan Limited, JS Global Capital Limited and JS Investments Limited — posted Rs10.587 billion in profit before tax and Rs4.723 billion in profit after tax for the half year.

Consolidated PAT was lower than the Rs5.324 billion recorded a year earlier, although profit attributable to equity holders increased to Rs4.157 billion from Rs4.073 billion. Consolidated EPS improved to Rs2.03 from Rs1.99.

The consolidated capital adequacy ratio stood at 13.68% at June 30, compared with 14.63% at the end of December 2025.

Outlook

JS Bank said Pakistan’s economic outlook was becoming more constructive, citing stronger external buffers, fiscal discipline and expectations of lower interest rates going forward. At the same time, the bank noted that bond-yield volatility and capital management would remain important issues for the banking sector.

Overall, JS Bank’s first-half results point to a significant improvement in standalone profitability, supported by stronger net interest income, a better deposit mix, disciplined costs and the reversal of credit loss allowances. The bank’s expanding deposit base and capital-raising efforts could provide additional support as it navigates changing economic and regulatory conditions.