Karachi August 29 2022: Subsequent to the period end, Faysal Bank has successfully converted 4 more branches; the Bank now has only one conventional branch left, according to the information disclosed by the Bank.
“As per our strategic plan, we will Insha’Allah apply to SBP for issuance of Islamic banking license later during the year” says Bank’s Chief Executive Officer Mr. Yousaf Hussain.
He added, “We will continue to invest in network expansion and are planning to open another 67 branches this year. The Bank will continue to work towards bringing efficiencies, increasing deposit growth and improving quality of customer service. Alongside investment in branch infrastructure, the Bank is focused on providing innovative digital solutions and will continue to invest in modern technologies to improve digital offerings and customer experience.”
Net markup income at PKR 16,236 million registered impressive growth of 36.3% over corresponding period. The increase in net markup income is a result of robust growth of PKR 57 billion or 26.6% in current deposits from June 30, 2021. Non markup income at PKR 4,424 million higher by 3.5% than the corresponding period. Excluding loss on securities, non-markup income showed robust growth of 35.8%.
Rising inflation, PKR devaluation against USD and increase in branch network led to an increase of PKR 2,734 million or 28.3% in non-markup expenses. Net provisions for the half year ended June 30, 2022 reflected reversal of PKR 406 million as against reversal of PKR 12 million in the corresponding period of last year. Accordingly profit before tax for the period ended June 30, 2022 at PKR 8,675 million was 32.5% higher than corresponding period last year. In the last budget the tax rate on the banking sector was increased from 39% to 49% resultantly tax charge at PKR 4,293 million was higher by 70%. Despite higher taxation, Profit after tax at PKR 4,328 million was 9% higher than the corresponding period last year.
On the balance sheet side deposits grew by 12% to PKR 722 billion. The Bank concentrated on mobilising low-cost deposits during the half year and resultantly there was a growth of PKR 74.5 billion in CASA deposits. Advances increased by 19.7% from December ’21 level to PKR 474 billion. Liquidity generated from borrowings from financial institutions was invested in government securities, as a result investment are higher by 5.8 % at PKR 378 billion. Total assets of the Bank were at PKR 997.7 billion as at June 30, 2022 registering a strong growth of 14.7%.
