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HomeEquityFABL’s net income improves by 25% on lower provisioning

FABL’s net income improves by 25% on lower provisioning

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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Posted on: 2022-02-23T15:02:31+05:00

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