October 23, 2025 (MLN): Faysal Bank Limited (PSX: FABL) has reported a consolidated profit after tax of Rs15.55bn for the nine months ended September 30, 2025, showing a decline of 24% compared to Rs20.35bn in the same period last year. The bank also declared a cash dividend of Rs1.50 per share.

Total income stood at Rs72.51bn, down 2% from Rs73.97bn in 9MFY24. Net profit/return decreased by 13% to Rs52.11bn, as profit earned dropped 29% while profit expensed fell 38% YoY.

Total other income increased by 48% to Rs20.40bn, supported by a more than 3 times rise in gains on securities and a 72% surge in foreign exchange income, despite lower dividend income and other income components.

This topline momentum, however, was undercut by persistent macro-economic challenges and structural shifts within the banking sector.

The largest pressure on the bottom line stemmed from a substantial increase in the bank's effective corporate tax rate, which rose in the first half of the year, directly impacting the final net profit figure.

On the expense side, operating expenses grew 21% to Rs42.45bn, while total expenses rose 20% to Rs43.20bn. This increase is largely due to nationwide inflationary pressures and the full-year operational cost of  strategic, ongoing expansion of the branch network.

The impact of these pressures was significantly cushioned by a notable improvement in the bank's asset quality, which resulted in a massive net reversal of credit loss allowances and write-offs amounting to Rs4.2bn, compared to only Rs1.36bn recorded last year.

Taxation expenses decreased to Rs18.15bn, bringing the profit after tax to Rs15.55bn.

Earnings per share (EPS) for the nine-month period were reported at Rs10.25, compared to Rs13.41 in the same period last year.