Press Release
VIS Reaffirms Entity Ratings of Faysal Bank Limited
Karachi, June 30, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Faysal Bank Limited (‘FABL’ or the ‘Bank’) at 'AA+/A1+' (Double A Plus/A One Plus. Medium to long term rating of 'AA+' indicates high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short term rating of 'A1+' indicates strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings is ‘Stable.’ The previous rating action was announced on June 30, 2025.
FABL was incorporated in Pakistan on October 3, 1994, as a public limited company under the Companies Act, 2017, and is listed on the Pakistan Stock Exchange (PSX). Originally established in 1987 as a branch of a Bahraini institution, FABL was incorporated locally in 1994 and later completed its conversion to an Islamic bank, receiving an Islamic banking license from the State Bank of Pakistan (SBP) in the Bank’s name dated December 30, 2022, effective from January 1, 2023. This transformation has made it the second largest full-fledged Islamic bank in Pakistan by branch network and market presence. FABL as of Dec 2025 had a branch network of 900 branches and a market share of 13% of Islamic banking deposit in Pakistan. The Bank’s majority shareholder is Ithmaar Bank B.S.C, a wholly owned subsidiary of Ithmaar Holdings B.S.C, with a 66.78% stake, while Dar Al-Maal Al-Islami Trust (DMIT) serves as the ultimate parent company.
The ratings reflect the Bank's strong domestic franchise as one of Pakistan's leading Islamic banks, supported by its successful transition to a full-fledged Islamic banking model, experienced management team, sound governance framework, and strategic backing from its majority shareholder. The ratings further incorporate the Bank's growing deposit base, improved asset quality, underpinned by broad-based growth in the financing portfolio, disciplined underwriting standards, and effective recovery efforts. Capitalization remains adequate; however, capital ratios have moderated due to rapid growth in risk-weighted assets. The Bank's Tier-2 capital issuance, subsequent to Quarter end- Mar'26, is expected to strengthen its capital buffers and improve the Capital Adequacy Ratio (CAR) providing additional capacity to support future business growth. Liquidity metrics have also moderated as the Bank strategically redeployed excess liquidity into higher-yielding financing assets; however, they continue to remain comfortably above regulatory requirements. Going forward, the Bank's ability to sustain profitability in a lower-rate environment, preserve asset quality amid portfolio expansion, maintain adequate liquidity and capitalization buffers, and successfully execute its strategic growth initiatives will remain key rating considerations.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Financial Institutions
https://docs.vis.com.pk/Methodologies-2026/FI-Methodology-26.pdf
Instrument Rating
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf