Faysal Bank Limited has reported handsome profit growth of 29 percent in the first quarter of 2020 compared with Q1 2019.
The bank’s profit increased to Rs. 2.08 billion from January to March 2020 as compared with Rs. 1.68 billion in the same period last year. The bank’s earning per share surged to Rs. 1.37 as of now.
Like different banks, Faysal Bank remained immune to the financial impact of the COVID-19 outbreak and its related lockdown. Down the line, tough challenges are ahead for the banking industry in which banks with efficient human resources and operations can capitalize on opportunities as the prevailing economic situation is a litmus test for them.
The bank made an interest income of Rs. 6.5 billion and non-interest income of Rs. 1.9 billion. Its expenses on various accounts stood at Rs. 4.8 billion whereas it paid Rs. 1.36 billion taxes in this quarter.
Faysal Bank has been on track on converting its operations from conventional banking to Islamic. It has converted more than 75 percent of its operations and branches into being Shariah-compliant so far.
The bank is likely to be a full-fledged Islamic bank this year though the present situation of business and economy might delay its plans by a few more months.
With the reduction in policy rates, the interest and profit rates of the bank will go down substantially which will reflect the different financial performance on the balance sheet in the next three quarters as opposed to the staggering growth of the first quarter. Various relief schemes introduced by the central bank are business opportunities for banks to enhance their advances and the number of borrowers for generating revenue from spread and interest.