Faysal Bank Limited (PSX: FABL), one of the prominent Islamic banks in Pakistan, declared a consolidated profit after tax (PAT) of Rs. 7.659 billion for the first half of 2023.

According to the financial results, the profit of the bank grew by 75.7 percent year-on-year in H1 2023 compared to the profit of Rs. 4.357 reported in a similar period of 2022. Along with the result, FABL reported earnings per share (EPS) of Rs. 5.05 in H1 compared to EPS of Rs. 2.87 reported in SPLY.

The bank’s profit before tax of Rs. 15.23 billion for H1 recorded an increase of 74.8 percent over last year but taxation to the tune of Rs. 7.59 billion lowered PAT.

During H1, the bank’s total income increased by 71 percent to Rs. 35.8 billion compared to Rs. 20.9 billion reported in H1 2022. The return earned on Islamic financing and related assets, investments and placements increased to Rs. 82.1 billion, up 101 percent from Rs. 40.8 billion reported in SPLY. The fee and commission income of the bank increased by 28.1 percent YoY to Rs. 4.51 billion.

FABL’s foreign exchange income increased to Rs. 1.67 billion in H1, registering a growth of almost 17 percent compared to the previous year. The dividend income slid by 40 percent YoY to Rs. 209.9 million.

The bank’s operating expense in H1 registered an increase of 45 percent and stood at Rs. 17.8 billion compared to Rs. 12.3 billion reported in the previous year.

Deposits have increased by 16% and reached Rs. 908 billion, further reaffirming the trust and confidence that clients place in the Bank’s stability and reliability. The upward trend in Current Accounts (CA) seen over the past few quarters continued, reaching Rs. 330 billion, indicating a 19 percent growth over Dec 2022. This achievement not only strengthens the bank’s financial position but also underscores its commitment to meeting the evolving needs of its customers.

“Faysal Bank’s remarkable financial performance in the first half of 2023 is a reflection of our commitment to our customers, shareholders, and the principles of Islamic banking. We are dedicated to delivering sustainable value and nurturing trust,” said Yousaf Hussain, CEO of Faysal Bank Limited. “We will continue leveraging our strengths and identifying growth opportunities to further enhance the financial landscape and contribute to the prosperity of our stakeholders”.

FABL’s other income declined by 16.8 percent to Rs. 103.9 million from Rs. 125 million reported in H1 2022.

The bank announced an interim cash dividend for the second quarter (half year) ended June 30, 2023, at Re. 1 per share of Rs. 10 each i.e. 10 percent.

Source: Pro Pakistani