Karachi October 27 2023: Faysal Bank Limited quarterly profit has been on increasing trajectory, and in Q3’23, owing to conversion to Islamic Banking, the Bank achieved its highest quarterly profit ever and reached quarterly PBT of PKR 9.1 billion and PAT of PKR 4.5 billion.
Bank has achieved a record-breaking Profit Before Tax (PBT) of PKR 24.1 billion in 9m’23, surpassing the corresponding period last year PBT of PKR 15.0 billion by an impressive 60.5%. Profit After Tax (PAT) rose to PKR 12 billion in 9m’23 representing a 57.2% increase from PKR 7.7 billion in 9m’22. Furthermore, Earnings Per Share exhibited a commendable rise, surging from PKR 5.05 to PKR 7.94.
The Bank continued to deliver on growth objectives and has substantially increased total revenue by 67.0% over 9m’22 to PKR 56.1 billion. Robust growth in balance sheet (9m’23 vs 9m’22) coupled with an increase in spreads led to a year-on-year growth of 82.4% in net spread earned taking it to PKR 49.1 billion in 9m’23. Healthy growth in current deposits of PKR 57 billion (20.9%) YoY and increase in the average benchmark rate helped improve the overall spreads. Non-Fund income grew by 4.4% over the corresponding period last year and is at PKR 6.9 billion in 9m’23. Excluding the loss on securities, non-fund income showed robust growth of 13.6%.
As a result of prevailing circumstances of historically high inflation, a depreciating PKR relative to the USD, and an expanding branch network, the bank's total expenses have risen by 45% over 9m'22. However, the cost to income ratio has improved from 57.4% in 9m’22 to 50.0% in 9m’23. The net provision for 9m’23 was PKR 3.9 billion, compared to a reversal of PKR 0.7 billion in 9m’22. These include provisions of PKR 3.3 billon made to address any potential unforeseen credit losses due to the challenging economic conditions. The Bank increased general provision by PKR 3.4 billion taking the total coverage ratio to 100.1% from 89% in Dec’22. The NPL ratio continued to reduce and is at 4.4%.
As a result of strong deposit mobilization and borrowings, FBL total assets continued to grow and are at PKR 1.3 trillion. The upward trend in Current Accounts seen over past few years continued, taking them to PKR 332 billion i.e., 19.7% growth over December 2022. Total deposits also increased by 21.5% over December 2022 and reached PKR 950 billion. The CASA mix, however, due to growth in rewarding Term Deposits, marginally decreased to 77.1% from 80.0% at December 2022.
FBL’s net financing increased by 8.1% to PKR 491 billion, with the ADR reducing to 51.7% from 58.1% in December 2022. This reflects the bank’s prudent risk management policies.
Faysal Bank remain steadfast in our dedication to delivering good results and creating sustainable value for our stakeholders. With a strong foundation and a strategic focus on growth, we are confident in our ability to In Sha Allah, achieve new heights in the nearest future.