Bahrain-based Ithmaar Bank has planned to operate in 100 branches in Pakistan this year through its subsidiary Faysal Bank Limited (FBL), in order to capitalize on the low penetration rate of banking services and increasing acceptance of Islamic banking in the country.
Faysal Bank’s footprint now spreads over more than 120 cities with over 400 (including 197 Islamic) branches and 372 ATMs all over the country.
With the addition of 100 new branches, the number of branches will increase to 500 in 2018.
“We are planning to be over 500 branches this coming year and are aggressive in this,” Al-Mutawa said in an interview to Reuters. Al-Mutawa was speaking after Ithmaar Bank’s parent company, Ithmaar Holding, listed on the Dubai Financial Market on Monday.
“Banking penetration is around less than 20% in Pakistan, so there are good opportunities to grow.”
Faysal Bank, which is listed on the Pakistan Stock Exchange, focuses on corporate, commercial, retail and consumer banking activities.
Ithmaar Bank owns 66% of Faysal Bank, whose contribution to the Islamic retail bank’s overall balance sheet would likely grow to more than half as a result of the expansion, Ithmaar Deputy Chief Executive Abdul Hakeem Al-Mutawa said.
According to the financial report, Faysal Bank’s total assets are in excess of Rs. 472 billion.
The bank is on the path of transforming itself into an Islamic Financial Institution. This will be done after careful evaluation of the conversion progress while ensuring that the interests of all stakeholders are protected.
Leadership Transition in 2017
The bank witnessed a leadership transition last year as Nauman Ali Ansari quit Faysal Bank to join Bank Alfalah Limited.
The board of directors had given an additional charge to Chief Risk Officer Yusaf Hussain as its acting CEO. He has been associated with the bank for more than eight years and proved that he has the drive and expertise to be a CEO and President of the bank for next three years.
Faysal Bank also hired a senior banker from the Islamic Banking Industry, Faisal Shaikh, as its Head of Islamic Banking mainly to pace its transition to Islamic banking operation mode.
Faysal Bank Gearing up Digital Banking
The bank is also in the process of developing a Digital Banking strategy so as to provide secure, state of art and user friendly banking services to its customers.
Its Internet Banking operations have shown significant growth, with 39,733 subscribers using this facility and 365,605 transactions worth Rs. 10.3 billion executed by September 2017-end.
