Karachi: Faysal Bank Limited (FABL) announced a significant increase in profitability for the fourth quarter of the calendar year 2025, reporting a net profit after tax (NPAT) of PKR 6.7 billion, which equates to earnings per share (EPS) of PKR 4.4. This represents a 105% year-over-year increase and a 34% quarter-on-quarter rise in profits. The growth exceeded expectations, primarily due to a higher-than-anticipated gain on the sale of securities, according to AKD Securities Limited.
In addition to the financial results, FABL declared a final cash dividend of PKR 2.0 per share for the year, slightly below the anticipated PKR 2.5 per share, bringing the total cash payout for the year to PKR 6.5 per share. The bank's net spread earned during the fourth quarter was PKR 17.6 billion, marking a 13% year-over-year and 1% quarter-on-quarter decline, attributed to reduced yields and the impact of the minimum deposit rate (MDR) on savings accounts.
FABL's deposits saw a substantial increase, rising 37% year-over-year and 12% quarter-on-quarter to PKR 1.4 trillion, outpacing the sector's average growth of 24% year-over-year. Meanwhile, the profit on Islamic financing dropped by 15% year-over-year and remained flat quarter-on-quarter, amounting to PKR 41.1 billion. The profit on deposits was PKR 23.5 billion, reflecting a 15% year-over-year decrease but a 1% quarter-on-quarter increase. The bank's net interest margins (NIMs) were estimated to decline to 4.8% in the fourth quarter, compared to 6.5% in the same period last year, and 4.9% in the previous quarter.
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