JS Bank Reports 67% YoY Growth in Profit After Tax for 9M 2026

KARACHI, October 29, 2026: JS Bank Limited (PSX: JSBL) reported a 67% year-on-year increase in profit after tax to PKR 4.30 billion for the nine months ended September 30, 2026, compared with PKR 2.569 billion in the corresponding period last year.

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The bank’s profit before tax rose 58% to PKR 8.932 billion from PKR 5.665 billion. Earnings per share (EPS) also improved, reaching PKR 2.10 against PKR 1.25 a year earlier, reflecting stronger reported profitability during the period.

Asset Base and Deposits Continue to Expand

JS Bank maintained growth in its balance sheet, with total assets increasing 12% to PKR 733.719 billion as of September 30, 2026, compared with PKR 655.636 billion at December 2025.

Total deposits rose 10% to PKR 598.123 billion from PKR 543.502 billion over the same period, strengthening the bank’s deposit base.

The composition of deposits also improved, with the share of non-remunerative deposits increasing to 43.35% from 40.87% at December 2025. This shift reflects the bank’s focus on building a sustainable, lower-cost funding base to support its operations.

Fee Income Grows as Cost Management Supports Performance

JS Bank’s operational performance benefited from diversified revenue streams and controlled expense growth. Fee income increased 4.34% to PKR 3.828 billion during the nine-month period.

Meanwhile, non-markup expenses rose by just 3.3% to PKR 23.152 billion, reflecting disciplined cost management amid the bank’s continued business expansion.

The combination of higher fee income and restrained expense growth supported operational performance, alongside the improvement in reported profitability.

Credit Loss Reversals Contribute to Higher Earnings

A significant factor in the improvement in reported earnings was the movement in credit loss allowances.

JS Bank recorded a net reversal of credit loss allowances amounting to PKR 1.733 billion during the first nine months of 2026, compared with a net charge of PKR 3.182 billion in the corresponding period last year.

This change contributed significantly to the increase in profit after tax, highlighting the impact of credit loss provisions on the bank’s reported financial performance.

JS Bank Completes PKR 4 Billion Tier-2 TFC Issuance

During the period, JS Bank successfully completed its sixth Tier-2 Term Finance Certificate (TFC) issuance, raising PKR 4 billion.

Supported by improved profitability and additional Tier-2 capital, the bank reported a Capital Adequacy Ratio (CAR) of 13.30% as of September 30, 2026.

The capital position provides an important measure of the bank’s capacity to absorb potential losses and support its financial operations.

Management Emphasises Sustainable Growth

Commenting on the results, Basir Shamsie, President and CEO of JS Bank, said the nine-month performance reflected continued progress in strengthening the bank’s financial position and expanding its core business.

He highlighted deposit growth, an improved low-cost deposit mix and disciplined cost management as encouraging developments. He added that the bank would remain focused on sustainable growth, improving customer experience and supporting the financing needs of key sectors of Pakistan’s economy.

Outlook: Deposit Growth and Capital Strength Remain in Focus

JS Bank’s nine-month results show improvements in profitability, deposits, assets and capitalisation. Growth in non-remunerative deposits and controlled non-markup expenses also point to the bank’s efforts to strengthen its funding mix and manage operating costs.

However, the contribution of credit loss allowance reversals to earnings remains an important factor when assessing the sustainability of reported profit growth. Going forward, deposit mobilisation, core business expansion, cost discipline and capital adequacy will remain key areas to monitor.