Faysal Bank posted a profit of Rs 4.514 billion in the year that ended on December 31, 2017, up by 4.88% as compared to Rs 4.301 billion earned in the corresponding period in 2016.
The bank’s earnings per share surged to Rs 3.42 in the period under review against Rs 3.26 in the same period in the previous year.
The board of directors of the bank, in its meeting held on Wednesday, recommended issuing bonus shares in the proportion of 15 shares for every 100 shares held by shareholders i.e. 15 percent.
The bank’s markup/return/interest earning increased to Rs 28.791 billion in the year 2017 as compared to Rs 26.200 in the same period in 2016 while markup/ return/interest expenses increased to Rs 14.830 billion against Rs 14.134 billion.
On a YoY basis, NII grew 16% primarily on account of growing advances market share, accumulation of MTBs and higher yields. Entering into improving spreads regime.
Furthermore, Administrative Expenses also recorded double-digit growth of 15% YoY.
However, NMI was down 17%YoY mainly due to 42%YoY decline in dividend income and 60%YoY decline in capital gains, while fee income segment grew by a strong 22%YoY. The Bank was also successful in booking robust recoveries which helped it showcase better year-end performance.
The bank’s total non-mark-up/interest income declined by Rs 5.61 billion in the year 2017 as compared to Rs 6.95 billion in the same period in 2016 mainly due to 42%YoY decline in dividend income and 60%YoY decline in capital gains. While total non-mark-up / interest expenses increased to Rs 12.77 billion against Rs 11.77 billion.
The Bank was also successful in booking robust recoveries which helped it showcase better year-end performance.
Despite lower yields, the bank reported +14%YoY rise in net interest income likely due to growth in earning asset base. During the quarter, the bank experienced strong growth in non-interest income on the back of +51%YoY rise in fee income.
Faysal Bank’s share at the bourse was trading at Rs 25.94, up by 0.66% with a turnover of 654,500 shares on Thursday.
Recently in January, it was announced that Bahrain-based Ithmaar Bank plans to add more than 100 branches in Pakistan this year through its subsidiary Faysal Bank.
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
