Karachi October 28 2021: Faysal Bank continues to make significant progress on its strategy to convert into a full-fledged Islamic Bank as 83.4 percent of the Bank’s financing as of September ’21 end is sharia compliant.
“This has been made possible by the untiring efforts of the entire team under the supervision and guidance of the Sharia Board and the Board of Directors” says Chief Executive Officer Mr. Yousaf Hussain
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During the period under review, the Bank has converted another 21 branches into dedicated sharia compliant banking branches taking the number of Islamic Banking branches to 521 i.e., 90 percent of the network. Full conversion of the Bank to Islamic is no longer a distant dream but a distinct reality which we will InshaAllah achieve soon as envisaged in FBL’s strategy.
Despite drastic cut of 625 bps in policy rate during 2020, the Bank was able to generate net markup income of PKR 18,921 million for the nine months ended September 30, 2021, almost at the same level as compared to the corresponding previous year period. This was made possible through continued emphasis on generating low-cost deposits. The Bank also focused on increasing revenue from nonmark up income and generated 43 percent higher fee-based income as compared to last year with stellar growth across all product lines. Due to higher gain on government securities during the corresponding previous year, overall non-markup income showed marginal increase of 1.9 percent to PKR 6,414 million. Non markup expenses have increased by 7.2 percent to PKR 15,192 million mainly due to opening of 21 new branches in last quarter of 2020 and inflationary pressures.
Net provisions for nine months under review reflected charge of PKR 216 million as against charge of PKR 2,082 million in the corresponding period of last year.
Accordingly profit after tax for the nine months ended September 30, 2021 is 10 percent higher than corresponding period of previous year at PKR 6,069 million. Earnings per share for the current nine months period works out to PKR. 4.00.
On the balance sheet side deposits grew by 13.5 percent to PKR 613.7 billion. The Bank concentrated on reducing cost of deposit during the quarter and saw significant growth in low-cost deposits. Ratio of current deposits to total deposits has improved from 30.7 percent to 34.4 percent. Financing increased by 15.3 percent from December ’20 level to PKR 366.9 billion. Investments were 24.1 percent higher at PKR 343.7 billion. Accordingly, total assets of the Bank are at PKR 833.9 billion as of September 30, 2021 registering a strong growth of 17.5 percent.
