JS Bank Limited (JSBL) has reported a sharp decline in profitability for the first quarter of calendar year 2026, with profit after tax falling by 62.68 percent year-on-year.
The bank posted a profit of Rs1.16 billion for the quarter ended March 31, 2026, compared to Rs3.10 billion in the same period last year, according to financial results.
Earnings per share also dropped significantly to Rs0.44 from Rs1.18, reflecting a substantial erosion in shareholder returns.
The decline was driven by weaker income streams and rising costs. Net mark-up and interest income fell 9.28 percent to Rs15.21 billion, as interest earned dropped sharply despite a decline in interest expenses.
Non-mark-up income also decreased by 29.12 percent to Rs4.23 billion, mainly due to a steep 90.86 percent fall in gains on securities and a decline in dividend income.
Total income of the bank fell 14.49 percent to Rs19.45 billion during the quarter.
At the same time, operating expenses increased by 13.12 percent to Rs16.59 billion, further pressuring profitability. The bank also recorded a credit loss allowance and write-offs of Rs615.13 million, compared to a reversal in the same period last year, adding to the earnings strain.
As a result, profit before tax declined 54.88 percent to Rs3.38 billion. After taxation of Rs2.22 billion, net profit stood at Rs1.16 billion.
The results highlight continued pressure on the banking sector amid fluctuating investment returns, rising operational costs, and shifting credit conditions.
