Karachi: NBP Fund Management Limited's NBP Islamic Income Fund has released its annual report for the financial year ending June 30, 2026, which shows a significant decline in net income compared to the previous year. The report, dated October 1, 2026, details the fund's financial performance across various segments.
The fund's total income for 2026 stood at 1.00 billion rupees, a decrease from the 1.29 billion rupees recorded in 2025. Notably, income from corporate sukuk certificates increased to 108,018,000 rupees from 70,467,000 rupees in 2025. However, income from government securities dropped significantly from 600,141,000 rupees in 2025 to 315,314,000 rupees in 2026, marking a very large or significant move.
Other sources of income such as term deposit receipts and bai muajjal also showed varied performance. Income on term deposit receipts fell to 31,000 rupees from 107,512,000 rupees, while income on bai muajjal rose to 141,603,000 rupees from 93,654,000 rupees.
According to information available from the Pakistan Stock Exchange (PSX), the fund experienced a net loss on the sale of investments amounting to 1,568,000 rupees, compared to a greater loss of 3,981,000 rupees in the previous year. Additionally, there was an unrealized diminution in the re-measurement of investments classified as financial assets 'at fair value through profit or loss,' which resulted in a loss of 26,189,000 rupees, a reversal from an appreciation of 29,073,000 rupees in 2025.
The fund's expenses increased to 179,978,000 rupees from 164,342,000 rupees in 2025. Key expenses included remuneration for the management company, which rose to 139,820,000 rupees, and Sindh sales tax on this remuneration, which increased to 20,973,000 rupees. The remuneration of the Central Depository Company of Pakistan Limited, serving as the trustee, also saw a minor move, rising to 7,385,000 rupees from 6,763,000 rupees.
Net income before taxation fell sharply to 821,347,000 rupees from 1.13 billion rupees in 2025, indicating a very large or significant move. With no taxation applied, the net income after taxation mirrored this decline. The fund's earnings per unit for 2026 were recorded at 4.14 rupees.
The allocation of net profit for the year shows that income already paid on units redeemed amounted to 630,003,000 rupees, leaving 191,344,000 rupees available for distribution, excluding capital gains. This represents a decrease from the 275,440,000 rupees allocated in 2025.
NBP Fund Management Limited's report reflects the fund's performance across key financial metrics and highlights significant challenges faced in the year 2026.