KARACHI, August 20, 2026: Samba Bank Limited reported a significant improvement in profitability for the first half of 2026, with profit after tax rising nearly 48% year-on-year, although the bank continued to face pressure on its core net mark-up income.

According to the bank’s unaudited financial results for the six months ended June 30, 2026, Samba Bank recorded profit after taxation of Rs273.7 million, compared with Rs185.5 million in the corresponding period last year. This represents an increase of around 47.5%. Earnings per share also improved to Rs0.27, up from Rs0.18 a year earlier.

The improvement was also visible in the second quarter. Samba Bank earned Rs80.3 million after tax during the quarter ended June 30, 2026, compared with Rs18.7 million in the same quarter of 2025.

Lower Interest Income, But Profitability Improves

The bank’s results show that profitability improved despite a decline in net mark-up/interest income. For the first half, net mark-up income fell to Rs2.22 billion, from Rs2.94 billion a year earlier.

Non-mark-up income also declined, reaching Rs804.6 million during the six-month period compared with Rs884.8 million in the same period of 2025. Fee and commission income, foreign exchange income and gains on securities were among the components contributing to non-mark-up income.

At the same time, operating expenses increased to Rs2.69 billion from Rs2.52 billion, reflecting continued cost pressures.

A major factor supporting the bottom line, however, was the movement in credit loss allowances and provisions. The bank recorded a net reversal of Rs228.2 million in the first half of 2026, compared with a net charge of Rs883.5 million in the same period last year. This substantially supported profit before tax.

As a result, profit before taxation increased to Rs554.7 million, compared with Rs405.2 million in the first half of 2025.

Balance Sheet Shows Shift in Asset Mix

Samba Bank’s total assets increased to Rs228.26 billion as of June 30, 2026, from Rs206.44 billion at the end of December 2025.

Investments rose notably to Rs142.01 billion, compared with Rs117.36 billion at the end of 2025. Meanwhile, advances declined to Rs55.34 billion from Rs60.61 billion.

On the liabilities side, deposits and other accounts stood at Rs104.44 billion, down from Rs118.93 billion at year-end 2025. Borrowings, however, increased substantially to Rs94.68 billion, compared with Rs52.21 billion at December 31, 2025.

The bank’s net assets stood at Rs18.69 billion at the end of June 2026, broadly close to the Rs18.80 billion recorded at the end of 2025.

Strong Operating Cash Flow

Samba Bank also reported a significant improvement in cash generated from operating activities. Net cash flow from operating activities reached Rs30.20 billion during the first half of 2026, compared with Rs8.24 billion in the corresponding period last year.

However, investing activities resulted in a net cash outflow of Rs25.48 billion, primarily reflecting investments in securities. Financing activities also recorded a net outflow of Rs5.60 billion. Cash and cash equivalents stood at approximately Rs9.57 billion at June 30, 2026.

No Dividend Announced

Along with the financial results, Samba Bank disclosed that the board approved no cash dividend, bonus shares or right shares for the period. No other corporate action or price-sensitive information was announced.

Overall, Samba Bank’s first-half performance reflects a mixed operating environment: core interest income remained under pressure and expenses increased, but a sharp improvement in credit-loss provisions helped lift the bank’s bottom line. The growth in total assets and investments, coupled with stronger operating cash generation, will remain important indicators for investors as the bank moves into the second half of 2026.