Faysal Bank Limited reported earnings per share of PKR 14.30 in CY25, down 6% from PKR 15.17 in CY24. This translates into profit after tax of PKR 21.7 Bn compared to PKR 23.0 Bn in SPLY. The bank declared a dividend of PKR 6.50 per share in CY25, down 7% from PKR 7.00 in CY24.
Total income in CY25 reached PKR 99.1 Bn against PKR 97.7 Bn in CY24, an increase of 1%. This was primarily driven by a 70% increase in non-mark-up income from PKR 17.4 Bn in CY24 to PKR 29.4 Bn in CY25. The bank saw its total deposits rise from PKR 1.0 Trn at the end of CY24 to PKR 1.4 Trn at the end of CY25, an increase of 37%. Current accounts saw 38% growth during the year. Additionally, market share of deposits rose from 3.4% to 3.8% during the period.
Management expects CY25 deposit growth to continue to outpace industry growth by 3-4%. Investments stood at PKR 677 Bn at the end of CY25, down 6% from PKR 635 Trn at the end of CY24. Management highlighted that out of its portfolio, 26% is in fixed rate instruments with weighted average yield of 12% and 74% of the book is in variable rate instruments of which a large portion is due to reprice in April. As a result, the bank is uniquely positioned in this changing rate environment with its fixed rate exposures on the lower side.
The bank’s cost to income ratio for CY25 stood at 57% compared to 50% in CY24. This was driven by branch network expansion. The management highlighted that it added 45 branches this year to reach a total of 900. It highlighted that it aims to continue to add branches over the next 5 years to reach a total of 12-1300. Each branch takes 4-5 years to begin to add meaningful value to the overall network.
As such, it expects its cost to income to remain elevated as new branches come online with it expected to fall below 50% in the medium term. Capital Adequacy Ratio stood at 14.0% at end Dec-25, up from 16.5% at the end of CY24. With regards to this, the management apprised that they are launching tier-2 sukuk of PKR 5 Bn with a PKR 2 Bn greenshoe option which is expected to materialize by Q2.
This action is meant to support the bank’s growth ambitions. In response to a question regarding the dividend policy the management said that the bank aims to continue to maintain a payout ratio of about 40-45% as in recent history. With regard to the Maple Leaf Cement Factory stake acquisition, the management highlighted that they are not aware of further details however they did apprise that as of 31st December 2025, MLCF owned less than 5% of the bank. Moving forward, the management believes that the policy rate has bottomed out and it is likely that SBP will hike the rate in its upcoming MPC meeting.
Important Disclosures
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