Faysal Bank Limited (PSX: FABL) announced earnings (PAT) today for 3QCY23 at Rs. 4.65 billion (EPS: Rs. 3.06), depicting an increase of 34 percent year-on-year (YoY) or 7 percent QoQ (3QCY22 EPS: Rs. 2.28).
This jump in overall earnings was mainly on the back of growth in net profit earned, according to Arif Habib Limited. On a sequential basis, higher provisioning impacted the overall profitability.
Along with the result, FABL announced a DPS of Rs. 1 in 3QCY23, taking the 9MCY23 dividend to Rs. 2 per share.
Net profit earned by the bank settled at Rs. 18.4 billion during 3QCY23, increasing 72 percent YoY and 4 percent QoQ. With this, the total net profit earned for 9MCY23 went up to Rs. 49 billion, marking an 83 percent YoY jump. Profit earned saw a jump of 89 percent during 9MCY23 while profit expensed was up by 93 percent.
During 3QCY23, NFI reported a 2 percent YoY and a 3 percent QoQ growth, bringing the total NFI for 9MCY23 to Rs. 7.5 billion, a 6 percent YoY increase. This growth in 3QCY23 was mainly attributed to a substantial 50 percent YoY surge in fee income. However, there were declines in other areas, with FX income decreasing by 53 percent and losses on securities rising by 77 percent YoY to Rs. 553 million during 3QCY23.
On a sequential basis, fee income increased by 11 percent, while dividend and FX income declined by 86 percent and 23 percent, respectively.
The bank’s provisioning in 3QCY23 amounted to Rs. 1.6 billion, in contrast to provisioning reversals of Rs. 330 million reported in the SPLY. However, when comparing it on a QoQ basis, there was a significant 68 percent increase in the provisioning charge. This brings the total provisioning for 9MCY23 to Rs. 3.9 billion, significantly higher than the provisioning reversal of Rs. 736 million during the same period last year.
The bank’s OPEX increased 44 percent YoY in 3QCY23 clocking in at Rs. 10 billion (3QCY22: Rs. 6.97 billion). With this, Cost/Income stood at 48.3 percent in 3QCY23 against 53 percent same period last year. The effective tax rate was set at 50 percent during 3QCY23 compared to 51 percent last quarter.
FABL’s scrip at the bourse closed at Rs. 24.39, down by 3.56 percent or Rs. 0.9 with a turnover of 5,884,340 shares on Thursday.
