Karachi: NBP Fund Management Limited's annual report for the NBP Financial Sector Income Fund, dated October 1, 2026, reveals a noteworthy decline in total income for the fiscal year ended June 30, 2026. The fund reported total income of 7.64 billion rupees, a significant move down from the previous year's 9.83 billion rupees.

The income statement highlights a reduction across several revenue streams. Income from Market Treasury Bills and Pakistan Investment Bonds fell to 1.45 billion rupees from 2.40 billion rupees. Similarly, income on letters of placement decreased to 900.65 million rupees compared to 2.02 billion rupees in the prior year. Income generated from term finance certificates, sukuks, and commercial papers also showed a downturn, amounting to 187.16 million rupees, a decrease from 405.87 million rupees.

According to information available from the Pakistan Stock Exchange (PSX), the fund's profit on bank balances, however, remained relatively stable, reaching 4.23 billion rupees, only slightly lower than the previous year's 4.42 billion rupees. The report also notes a net unrealized diminution on the re-measurement of investments classified as financial assets at fair value through profit or loss, showing a loss of 11.28 million rupees, compared to an appreciation of 53.69 million rupees last year.

On the expense side, the total expenses for the fund were 846.00 million rupees, a reduction from last year's 1.00 billion rupees. The decrease in expenses is primarily attributed to the absence of reimbursement costs related to selling, marketing, and other services, which were present in the previous year's financials.

Despite the reduction in both income and expenses, the net income for the year after taxation stood at 6.79 billion rupees, down from 8.82 billion rupees in the prior year. The net income allocated for distribution, excluding capital gains, was 1.13 billion rupees, compared to the preceding year's 1.15 billion rupees.

This report reflects the fund's performance in a challenging financial environment, as evidenced by the broader market trends.