Faysal Bank Limited (FBL) has achieved a significant milestone, crossing the Rs. 1 trillion balance sheet mark, accompanied by a record profit before tax of Rs. 15 billion, a remarkable 51% increase from the same period last year.
During a meeting of the FBL Board of Directors, an interim cash dividend of Rs. 5.50 per share (55%) was approved for the three months ending September 30, 2022, in addition to the Rs. 0.50 per share (5%) interim cash dividend paid for the second quarter concluding on June 30, 2022.
The bank is undergoing transformation into a fully functional Islamic bank and is paying out cash dividends from all retained non-Shariah compliant earnings to its shareholders. While the profit after tax (PAT) saw a 26% increase, reaching Rs. 7.7 billion in 9MCY22 from Rs. 6.1 billion in 9MCY21, the growth was limited due to high and retroactive tax measures proposed in the federal budget.
FBL’s milestone was fueled by significant deposit mobilization and borrowing, leading to a 27% increase in balance sheet footings. The current deposit momentum continued to surge, reaching Rs. 274 billion, a 27% increase over December 2021. The CASA mix improved to 80%, resulting in a 13% rise in total deposits.
Net advances climbed 18% to Rs. 468 billion, with growth across all loan operations and an improvement in the Advances to Deposit Ratio (ADR) to 65% as of September 2022. FBL has applied to the State Bank of Pakistan (SBP) for an Islamic Banking License and remains committed to its plan for conversion into an Islamic bank.
The bank’s overall revenue rose by 33% to Rs. 33.6 billion over 9MCY21, and the cost-to-income ratio decreased to 57% in 9MCY22 from 60% in 9MCY21. However, non-markup expenses increased by 27% over 9MCY21.
FBL also reported a decrease in the infection ratio, reaching 4.6%, with total coverage at 89.5% for the 9MCY22 period. The bank plans to expand its branch network, establishing over 50 branches in Q4 2022, aiming for a total of 700+ branches by year-end.
As part of its commitment to enhancing customer service and digital offerings, FBL will continue to invest in cutting-edge technologies to elevate the banking experience. Established in 1994, Faysal Bank Limited offers a wide range of contemporary banking services to various customer categories, including retail, small and medium-sized businesses, commercial, agri-based, and corporate clients. The bank’s shares are traded on the Pakistan Stock Exchange.
