February 23, 2022 (MLN): Faysal Bank Limited (FABL) has announced its CY21 result, posting consolidated profits of Rs8.35bn (EPS: Rs5.5), up by 25% YoY against the net profit of Rs6.68bn (EPS: Rs4.40) in the calendar year 2020, led by lower provision charges.
The financial result was accompanied by a final cash dividend of Rs10 per share for the year ended December 31, 2021,
During the period under review, the bank’s interest expenses dropped by 10.7% YoY, whereas, interest income came down by 3.7% YoY. As a result, the bank’s net interest income (NII) observed a marginal increase of 5.3% YoY to Rs25.84bn during CY21.
Meanwhile, non-funded income (NFI) of the bank witnessed an increase of around 6.8% YoY to clock in at Rs8.92bn due to a 37% increase in fee and commission income, 13.7% YoY upsurge in foreign exchange income coupled with a 96% YoY jump in other income. capital gains on securities of Rs3.46bn, up by 23.6% YoY during the said period. However, capital gains on securities fell by 83% YoY to Rs291mn, and loss of income derivatives of Rs 25mn during CY21 restricted the bank’s net income.
Notably, the bank witnessed a massive decline of 98% YoY in its provision charges, standing at Rs45mn against the provisions of Rs2.25bn in the last year due to the absence of general provision which the bank charged last year amid the COVID situation, supporting the bank’s financial health.
On the tax front, the effective tax rate stood at 39% from 38.7% in CY20.
|
Consolidated Profit and Loss account for the year ended December 31st, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Mark-up/return/interest earned |
53,872,073 |
55,925,846 |
-3.67% |
|
Mark-up/return/interest expenses |
28,032,641 |
31,378,104 |
-10.66% |
|
Net mark-up/interest income |
25,839,432 |
24,547,742 |
5.26% |
|
Non-mark-up/interest income |
|
|
|
|
Fee and commission income |
5,583,433 |
4,085,368 |
36.67% |
|
Dividend income |
435,437 |
281,864 |
54.48% |
|
Foreign exchange income |
2,379,113 |
2,093,354 |
13.65% |
|
(loss)/Income from derivatives |
(25,176) |
48,201 |
– |
|
Gain on sale of securities |
291,070 |
1,714,254 |
-83.02% |
|
Other income |
252,163 |
128,865 |
95.68% |
|
Total non-mark-up/interest income |
8,916,040 |
8,351,906 |
6.75% |
|
Total income |
34,755,472 |
32,899,648 |
5.64% |
|
Non-mark-up/interest expenses |
|
|
|
|
operating expenses |
20,794,981 |
19,569,580 |
6.26% |
|
Worker’s welfare fund |
273,650 |
227,031 |
20.53% |
|
Other charges |
7,682 |
114,170 |
-93.27% |
|
Total non-mark-up/interest expenses |
21,076,313 |
19,910,781 |
5.85% |
|
Share of profit of associates |
58,231 |
156,170 |
-62.71% |
|
Profit before provisions |
13,737,390 |
13,145,037 |
4.51% |
|
Provision and write-offs -net |
44,969 |
2,254,301 |
-98.01% |
|
Extraordinary/unusual items |
– |
– |
|
|
Profit before taxation |
13,692,421 |
10,890,736 |
25.73% |
|
Taxation |
5,339,341 |
4,210,115 |
26.82% |
|
Profit after taxation |
8,353,080 |
6,680,621 |
25.03% |
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