⚡ Flash Summary

NBP Islamic Savings Fund (NBP-ISF) reported its financial results for the quarter ended September 30, 2025. The fund’s size increased by 36% to Rs. 10,788 million. The unit price rose from Rs. 9.5995 on June 30, 2025, to Rs. 9.8227 on September 30, 2025, indicating a 9.2% p.a. return, slightly below the benchmark return of 9.5% p.a. The fund earned a total income of Rs. 343.26 million and a net income of Rs. 294.77 million after expenses.

📌 Key Takeaways

• 📈 Fund size increased by 36% from Rs. 7,912 million to Rs. 10,788 million.
• 💰 Unit price increased from Rs. 9.5995 to Rs. 9.8227.
• 📊 Return of 9.2% p.a. compared to a benchmark return of 9.5% p.a.
• 💸 Total income for the period was Rs. 343.26 million.
• 📉 Net income was Rs. 294.77 million after deducting expenses of Rs. 48.49 million.
• ⭐ NBP-ISF has a ‘AA- (f)’ stability rating from PACRA.
• 🏦 The State Bank of Pakistan (SBP) maintained the policy rate at 11% during the quarter.
• Inflation averaged 4.2% for Q1, down from 9.2% last year.
• 🎯 FY26 average inflation is projected to be within the SBP’s 5%-7% target range.
• 🌱 Real GDP growth for FY26 is projected between 3.0% and 3.5%.
• 💲 Foreign exchange reserves stood at USD 14.4 billion on September 26th.
• ✔️ Fiscal performance improved with a primary surplus expected in Q1 FY26.
• 📜 Asset allocation includes cash equivalents (53.20%), sukuks (17.58%), COI (16.24%), and term deposit receipts (12.98%).

🎯 Investment Thesis

The NBP Islamic Savings Fund is a HOLD due to its solid asset growth and diversified portfolio, offset by a slight underperformance against its benchmark. The fund’s exposure to cash equivalents is substantial. While its rating and Shariah compliance are positive factors, the fund should focus on optimizing its asset allocation to enhance returns. A closer examination of the expense ratio and its impact on net income is warranted.