Faysal Bank Limited (FBL) has achieved the landmark of Rs. 1 trillion mark in balance sheet footings with a record profit before tax of Rs. 15 billion, 51 percent higher than the corresponding period last year.
The Board of Directors of Faysal Bank Limited, in their meeting, 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 percent. 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 percent.
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 cash dividends.
The increase in profit after tax (PAT) is restricted to 26 percent from Rs. 6.1 billion in 9MCY21 to Rs. 7.7 billion in 9MCY22 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, a 27 percent growth over December 2021. Total deposits increased by 13 percent over December 2021 with the CASA mix improving to 80 percent from 75 percent in December 2021.
FBL’s net advances increased by 18 percent to Rs. 468 billion, with the growth across all lending businesses and improvement in ADR to 65 percent as of September 2022. Despite the prevailing uncertainty, FBL is committed to its strategy for conversion into an Islamic bank and has applied to SBP for the issuance of an Islamic Banking License.
The bank continued to deliver on growth objectives and increased the total revenue by 33 percent over 9MCY21 to Rs. 33.6 billion. Non-markup expenses of the bank have increased by 27 percent over 9MCY21 while the cost-to-income ratio has improved from 60 percent in 9MCY21 to 57 percent in 9MCY22.
Net provision for 9MCY22 reflected reversals of Rs. 0.7 billion while the infection ratio continued to reduce and is at 4.6 percent with total coverage at 89.5 percent. FBL will continue to invest in expanding its footprint through network expansion and is planning to open another 50+ branches in Q4 2022 with an objective 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, and 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.
Source: Pro Pakistan