Faysal Bank delivers exuberant performance – registers PKR 1 trillion landmark

The Board of Directors of Faysal Bank Limited (FBL), in their meeting held on October 27, 2022, approved the financial statements of the Bank for the nine months ended September 30, 2022, and announced an interim cash dividend of Rs. 5.50 per share, i.e. 55%. This is in addition to the interim cash dividend for the second quarter that ended June 30, 2022, already paid at Rs. 0.50 per share, i.e. 5%. FBL achieved the landmark Rs. 1 Trillion mark in Balance Sheet footings with a record Profit Before Tax of Rs. 15.0 billion, 51% higher than last year.

Al-Hamdulillah, the Bank is very close to completing the requirements of converting Faysal Bank Limited into a full-fledged Islamic bank. Accordingly, all the Non-Shariah Compliant retained earnings of the Bank are being distributed to the shareholders as a cash dividend.

FBL has delivered an exuberant performance in the nine months of 2022 with a Profit Before Tax (PBT) of Rs. 15.0 billion, 51% higher than the Rs. 9.9 billion in the corresponding period last year. However, the Profit After Tax (PAT) increase is restricted to 26% from Rs. 6.1 billion in 9m’21 to Rs. 7.7 billion in 9m’22 on the back of extremely high and retrospective tax measures announced in the Federal Budget.

FBL achieved the landmark of Rs. 1.0 trillion mark in balance sheet footings on the back of strong deposit mobilization and borrowings.

Current deposit momentum built over the last several quarters continued and has reached Rs. 274 billion, 27% growth over December 2021. Total deposits increased by 13% over December 2021, with the CASA mix improving to 80% from 75% in December 2021. FBL’s net advances increased by 18% to Rs. 468 billion, with the growth across all lending businesses and improvement in ADR to 65% as of September 2022. Despite the prevailing uncertainty, FBL is committed to its strategy for conversion into Islamic Bank and has applied to SBP for issuing an Islamic Banking License.

The Bank continued to deliver on growth objectives and increased the total revenue by 33% over 9m’21 to Rs. 33.6 billion. Non-markup expenses of the Bank have increased by 27% over 9m’21, while the cost-to-income ratio has improved from 60% in 9m’21 to 57% in 9m’22. Net provision for 9m’22 reflected reversals of Rs. 0.7 billion while infection ratio continued to reduce and is at 4.6%, with total coverage at 89.5%. FBL will continue to invest in expanding its footprint through network expansion and is planning to open another 50+ branches in Q4’22 to reach the branch network to 700+ by the end of this year. The Bank will continue to reshape the banking experience by improving the quality of customer service and providing innovative digital solutions. It will continue to invest in modern technologies to improve digital offerings and customer experience.

FBL was incorporated in Pakistan on October 3, 1994, as a public limited company, and its shares are listed on Pakistan Stock Exchange. FBL offers a wide range of modern banking services to all customer segments, i.e., Retail, Small & Medium Sized Enterprises, Commercial, Agri-based, and Corporate.

Posted in Banking & Insurance News.

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