⚡ Flash Summary

NBP Riba Free Savings Fund (NRFSF) reported its financial results for the quarter ended September 30, 2025. The fund’s size decreased by 28% from Rs. 31,620 million to Rs. 22,613 million. The unit price increased from Rs. 10.3479 on June 30, 2025, to Rs. 10.5985 on September 30, 2025, showing a return of 9.6% p.a. The fund earned a total income of Rs. 606.26 million, with a net income of Rs. 547.98 million after deducting expenses.

📌 Key Takeaways

• 📉 **Fund Size Contraction:** The fund’s size decreased by 28%, from Rs. 31,620 million to Rs. 22,613 million.
• 📈 **Unit Price Appreciation:** Unit price increased from Rs. 10.3479 (June 30, 2025) to Rs. 10.5985 (September 30, 2025).
• ✅ **Competitive Return:** The fund generated a 9.6% p.a. return, compared to a benchmark of 9.5% p.a.
• 💰 **Total Income:** The fund earned a total income of Rs. 606.26 million during the quarter.
• 💸 **Net Income:** After deducting expenses of Rs. 58.28 million, the net income amounted to Rs. 547.98 million.
• 📊 **Cash Allocation:** Cash equivalents and other net assets constitute 81.86% of the fund’s asset allocation.
• 📜 **Sukuk Holdings:** Corporate Sukuk Certificates account for 8.38% of the fund’s asset allocation.
• 🤝 **Musharakah Investments:** Certificates of Musharakah represent 9.76% of the fund’s asset allocation.
• 🏦 **Policy Rate Maintained:** The State Bank of Pakistan (SBP) maintained the policy rate at 11%.
• 📉 **Inflation Easing:** Average inflation for Q1 eased to 4.2%, down from 9.2% last year.
• 🎯 **FY26 Inflation Target:** Average inflation for FY26 is projected within SBP’s 5%-7% target range.
• 🌱 **GDP Growth Projection:** Real GDP growth for FY26 is projected between 3.0% and 3.5%.
• ✔️ **Current Account Deficit:** Current account deficit was USD 624 million for July-August.
• 💵 **Forex Reserves:** Foreign exchange reserves stood at USD 14.4 billion on September 26th.

🎯 Investment Thesis

Given the fund’s contraction in size, conservative asset allocation, and competitive returns, a HOLD recommendation is appropriate. The fund is suitable for risk-averse investors seeking stable returns in line with Islamic finance principles. Further analysis is needed to assess the reasons behind the fund’s size decrease and potential for future growth. The current price of 10.5985, considering the 9.6% return, seems fair. However, without a deeper analysis of the sector and more detailed financial ratios, a more specific valuation is not possible. Target price: Maintain current price. The fund seems to be trading near par.