The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term entity rating of Faysal Bank Limited (PSX: FABL) to AA+ from AA, reflecting the bank’s stable financial profile and strong performance in the Islamic banking segment. The bank’s short-term rating remains A1+, with a stable outlook.
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The upgrade recognizes FABL’s successful transition into a full-fledged Islamic bank, which has reinforced its emerging position as one of Pakistan’s leading Islamic financial institutions. The bank has strengthened its brand identity through innovative marketing campaigns, strategic partnerships, and a focus on digital transformation.
| Rating Aspect | Assessment |
|---|---|
| Long-Term Rating | AA+ (upgraded from AA) |
| Short-Term Rating | A1+ |
| Outlook | Stable |
| Agency | PACRA |
Digital Banking and Deposit Growth
During FY25, FABL demonstrated significant growth in digital banking, processing transactions exceeding Rs3 trillion, while retail deposits surged past Rs1.4 trillion, up 36.7% from December 2024. Current accounts grew by 31.3%, reaching Rs536 billion, showing strong customer confidence and expansion in low-cost funding.
Income and Profitability
The bank maintained resilient topline momentum, reporting total income of Rs99 billion in CY25, compared to Rs98 billion the previous year. Net spreads were recorded at Rs69.6 billion, with non-funded income, including fees and foreign exchange, growing significantly.
Fee income rose by 22.7%, led by trade, card, and branch banking services, while FX income increased 46.7%. This diversification of income streams has contributed to the bank’s overall financial stability.
Financing Portfolio Expansion
FABL’s financing portfolio expanded by 37.6%, reaching Rs872 billion, and its market share increased to 6.1%. The bank’s Advance-to-Deposit Ratio (ADR) improved to 61.1%, outperforming the industry average of 37.5%, demonstrating the bank’s effective deployment of deposits into productive financing.
| Metric | Performance |
|---|---|
| Digital Transactions | Rs3tr+ |
| Retail Deposits | Rs1.4tr (+36.7%) |
| Current Accounts | Rs536bn (+31.3%) |
| Total Income | Rs99bn |
| Financing Portfolio | Rs872bn (+37.6%) |
| Market Share | 6.1% |
| ADR | 61.1% (industry avg: 37.5%) |
Risk Management and Capital Adequacy
Enhanced risk management practices reduced the infection ratio to 2.3%, indicating strong asset quality. The Capital Adequacy Ratio (CAR) remained solid at 14.04%, comfortably above regulatory requirements. This strong capital position provides the bank with resilience against potential shocks and capacity for future growth.
Future Outlook
Looking ahead, FABL plans to issue Tier-II capital to support growth and strengthen its balance sheet. The bank’s focus on asset quality, operational efficiency, and digital innovation is expected to sustain strong performance and long-term value creation.
About Faysal Bank Limited
Faysal Bank Limited (PSX: FABL) is one of Pakistan’s leading Islamic banks, offering a comprehensive range of Shariah-compliant banking products and services to retail, corporate, and institutional clients. The bank has successfully transitioned to a full-fledged Islamic banking model and continues to strengthen its market position through innovation and customer focus.
About PACRA
The Pakistan Credit Rating Agency (PACRA) is one of Pakistan’s leading credit rating agencies, providing independent assessments of creditworthiness for corporations, financial institutions, and government entities.
