Rank #4 in Inv. Banks / Inv. Cos. / Securities Cos.
First Credit and Investment Bank Limited (FCIBL) delivered a better FY2026 profit even though headline revenue collapsed. For the audited year ended 30 June 2026, profit after tax rose 17.3% to PKR 66.01 million and operating income before provisions increased 35.2% to PKR 56.45 million. The key was not top-line growth: the benefit came from finance costs falling faster than investment income as the interest-rate environment and treasury activity changed.
This analysis uses FCIBL’s audited standalone financial statements in Pakistan rupees. The auditor issued an unmodified opinion dated 18 September 2026. The result was approved and announced on 17 September 2026, while the annual report was transmitted through PSX on 2 October 2026. No corrected or revised result was identified in the official record reviewed.
Period: audited year ended 30 June 2026.
Total revenue: PKR 257.21 million, down 57.3% from PKR 602.16 million.
Operating income before provisions: PKR 56.45 million, up 35.2% from PKR 41.75 million.
Profit before levy and taxation: PKR 81.97 million, up 21.2% from PKR 67.65 million.
Profit after tax: PKR 66.01 million, up 17.3% from PKR 56.27 million.
Earnings per share: PKR 1.02, compared with PKR 0.87.
Total assets: PKR 4.37 billion, up 6.2%; shareholders’ equity: PKR 892.56 million, up 2.0%.
Dividend: the board recommended no final cash dividend, bonus issue or rights issue.
Revenue fell by PKR 344.95 million, but finance costs fell by PKR 365.91 million. Put differently, revenue after finance costs improved from PKR 140.36 million to PKR 161.32 million even before administrative expenses and credit-loss reversals. This is why a 57% revenue decline could coexist with a 35% increase in operating income.
Management attributes the revenue contraction to the lower State Bank of Pakistan discount rate and reduced treasury volume. The annual report says the policy rate declined to 10.5% by December 2025 before increasing to 11.5% in April 2026. The accounts show the transmission clearly: return on government securities fell 79.6% to PKR 103.29 million, while mark-up on short-term repo borrowing fell 79.3% to PKR 95.32 million.
That matched movement is important. FCIBL funds a large part of its investment book through short-term repos, so gross investment income and financing cost can both move sharply with rates and treasury volumes. The more decision-useful measure this year is the improved spread between total revenue and finance cost, not the revenue line in isolation.
Operating income before provisions increased by PKR 14.70 million to PKR 56.45 million. The operating margin on reported revenue expanded to 21.9% from 6.9%, although that margin should be interpreted carefully because the revenue base includes interest-sensitive investment returns while repo costs are reported separately.
Income from term finances and fund placements rose 5.4% to PKR 56.62 million. Within that, income from long-term finances increased to PKR 44.73 million, more than offsetting lower returns from fund placements with financial institutions.
Fees and commission income increased 17.6% to PKR 21.09 million. Money-market brokerage commission rose 41.2% to PKR 15.98 million, supporting management’s statement that investment in brokerage talent contributed more to profitability. Processing and participation fees also increased, while foreign-exchange brokerage commission fell 38.2% to PKR 2.36 million.
Although income from investments fell 68.0% to PKR 169.45 million, its mix was more favorable in selected areas. Capital gains on securities rose to PKR 59.45 million from PKR 17.04 million, dividend income more than doubled to PKR 4.91 million, and FCIBL recorded a PKR 9.85 million unrealised gain on an investment classified at fair value through profit or loss.
These gains helped offset the much lower return on government securities. They also make earnings quality more mixed: realized and unrealized market gains are genuine reported income, but they are less repeatable than contracted financing income or recurring brokerage fees.
FCIBL recognized PKR 26.51 million of total expected-credit-loss reversals, almost unchanged from PKR 26.39 million a year earlier. The composition shifted: reversal against accrued mark-up rose to PKR 8.68 million from only PKR 0.04 million, while reversal against investments declined to PKR 17.83 million from PKR 26.35 million.
The reversals represented about 32% of profit before taxation and workers’ welfare fund. They therefore remain a meaningful support to the bottom line, but the year-on-year profit improvement was not caused by a larger total reversal; it was already visible in the higher operating result before provisions.
Administrative and operating expenses increased 6.3% to PKR 104.87 million. Salaries were broadly stable at PKR 59.96 million, but depreciation, business-promotion spending, legal and professional costs, motor-vehicle expenses and several smaller lines increased. Cost growth was manageable against the improvement in revenue after finance costs, but it is still a drag on scalability.
The combined levy and tax charge rose to PKR 15.96 million from PKR 11.38 million. That lifted the effective levy-plus-tax burden to about 19.5% of profit before levy and tax, from 16.8%. Consequently, PAT growth of 17.3% lagged the 21.2% rise in pre-levy profit.
Other comprehensive income was a significant offset. FCIBL recorded a PKR 48.92 million OCI loss, versus PKR 32.34 million of OCI income in FY2025, largely from remeasurement and disposal effects on investments carried through OCI. Total comprehensive income was therefore only PKR 17.09 million, down from PKR 88.60 million, and shareholders’ equity rose just 2.0% despite the higher reported PAT.
Total assets increased 6.2% to PKR 4.37 billion. The auditor identified investment valuation as a key audit matter because investments totaled PKR 3.686 billion, equal to 84.4% of assets. The accounts show a large shift from long-term investments to short-term investments, but the filing does not provide a single operational explanation for that classification and maturity-mix change.
Short-term repo borrowing increased 6.6% to PKR 3.396 billion and represented 77.8% of total assets. The borrowings were secured against Pakistan Investment Bonds and carried mark-up rates of 11.8% to 12.2%. This structure magnifies sensitivity to funding conditions, collateral values and the profitability of the treasury book.
Management explicitly says liquidity challenges persist. Cash and bank balances fell 65.0% to PKR 89.27 million, while equity of PKR 892.56 million represented 20.4% of total assets. VIS reaffirmed FCIBL’s A long-term and A-1 short-term ratings with a stable outlook in June 2026, but the funding profile still warrants close monitoring.
Net cash flow from operating activities was a PKR 0.26 million outflow, compared with PKR 246.73 million of inflow in FY2025. Operating cash flow before working-capital changes was PKR 150.45 million, but higher long-term financing assets, receivables and finance costs paid absorbed nearly all of it.
Investing activities used PKR 365.53 million, mainly through net investment purchases, and lease payments used another PKR 9.24 million. FCIBL’s cash-flow definition includes short-term repo borrowings in cash equivalents, so the reported closing negative cash-equivalent balance of PKR 3.31 billion is not the same as bank cash. It nevertheless reinforces the importance of the repo-funded treasury structure.
The board declared no dividend, retaining earnings for investment and expansion. That is consistent with the disclosed liquidity challenge and modest 2.0% growth in equity after OCI, though shareholders received no cash distribution from the record annual profit.
FCIBL’s six-year summary shows reported PAT of PKR 66 million in FY2026, PKR 56 million in FY2025, PKR 32 million in FY2024, PKR 13 million in FY2023, PKR 8 million in FY2022 and PKR 21 million in FY2021. Management describes FY2026 as its highest-ever net profit. The direction is clearly stronger, but the current earnings mix contains substantial capital gains, fair-value gains and credit-loss reversals.
Assets have also expanded from PKR 1.85 billion in FY2023 to PKR 3.96 billion in FY2024, PKR 4.11 billion in FY2025 and PKR 4.37 billion in FY2026. Growth has brought scale, but it has also made the institution more exposed to investment valuation and short-term repo funding—precisely the areas highlighted by the auditor and management.
These are AlphaGen model outputs, not figures reported by FCIBL and not investment recommendations.
Alpha QoQ Score: 37.10
TTM Performance Score: 61.90
3Y Business Perf Score: 73.39
Sector Leadership Score: 61.79
First, watch the spread between investment and financing income rather than headline revenue alone. The FY2026 improvement came from finance costs falling faster than revenue; a change in repo rates, treasury volumes or asset yields could reverse that relationship.
Second, distinguish recurring income from market and credit effects. Brokerage growth and income from term finances are encouraging, but capital gains, fair-value gains and ECL reversals supplied a material share of earnings.
Third, monitor liquidity, the maturity mix of investments and short-term repo borrowing. The balance sheet remains heavily investment-based and repo-funded, while management itself acknowledges liquidity constraints.
Finally, track OCI and capital retention. FCIBL produced higher PAT but only PKR 17.09 million of total comprehensive income, and it retained all earnings rather than paying a dividend. A stronger next result would combine recurring operating growth with better cash generation and less adverse remeasurement volatility.
FY2026 was a genuine improvement in FCIBL’s operating economics: the decline in funding cost more than offset the fall in investment revenue, lifting both operating profit and PAT. The result is still not uniformly high quality. Market gains and provision reversals were important, operating cash flow was slightly negative, OCI absorbed most of reported profit, and the balance sheet remains concentrated in investments funded largely by short-term repos. The next test is whether brokerage and financing income can keep growing while liquidity and valuation risk become less dominant.
Pakistan Stock Exchange — FCIBL FY2026 financial result announced 17 September 2026
Pakistan Stock Exchange — FCIBL Annual Report 2026 transmitted 2 October 2026
Pakistan Stock Exchange — FCIBL company page and official announcements
First Credit and Investment Bank — financial statements archive