April 25, 2024 (MLN): Faysal Bank Limited (PSX: FABL) has started 2024 on a strong note as its profit during the first quarter (1QCY24) doubled to Rs6.61 billion [EPS: 4.35], compared to the recorded earnings of Rs3.31bn [EPS: 2.18] in 1QCY23.
Considering this remarkable performance, the Board of Directors (BoD) has recommended an interim cash dividend of Rs1 per share or i.e. 10%.
Analyzing the profit and loss statement, the bank witnessed a surge of 43.44% YoY in its net interest income (NII) to stand at Rs18.71bn, compared to Rs13.4bn in the same quarter last year.
It is to be noted that this spark in NII is due to a jump in interest-earning (Rs59.45bn), up by 70.66% YoY driven by higher interest rates.
Similarly, the bank’s total non-markup income during the review period also improved by 82.71% YoY to Rs4.98bn driven by a significant increase in fee and foreign exchange income attributed to improved economic activity.
The bank also witnessed a positive turnaround in its securities trading, with a gain of Rs227.24m during the quarter compared to a loss worth Rs887.92m reported in 1QCY23.
On the expense side, the total non-markup expenses expanded by 37.44% YoY to Rs11.04bn in 1QCY24 compared to Rs8.03bn in 1QCY23.
The increase was attributed to a 36.78% YoY jump in operating expenses, rising from Rs7.89bn to Rs10.77bn in 1QCY24.
Additionally, the bank’s expenses related to the Workers' Welfare Fund and other charges also went up during the review period.
Moving forward, the profit and loss statement shows that FABL incurred a provision reversal of Rs36.08m during 1QFY24, compared to a reversal of Rs1.36bn reported in SPLY.
On the tax front, the bank paid Rs6.1bn, 99.37% YoY higher than the amount paid in the same quarter last year.
| Consolidated Profit and Loss account for the quarter ended March 31 2024 ('000 Rupees) | |||
|---|---|---|---|
| Mar-24 | Mar-23 | % Change | |
| Mark-up/return/interest earned | 59,454,608 | 34,838,524 | 70.66% |
| Mark-up/return/interest expenses | 40,744,062 | 21,797,063 | 86.92% |
| Net mark-up/interest income | 18,710,546 | 13,041,461 | 43.47% |
| Non mark-up/interest income | |||
| Fee, commission and brokerage income | 3,000,836 | 2,140,147 | 40.22% |
| Dividend income | 70,572 | 60,517 | 16.62% |
| Foreign exchange income | 1,600,558 | 1,252,670 | 27.77% |
| Income from dealing in foreign currencies | (17,955) | 93,098 | -119.29% |
| (Loss)/Gain on sale of securities – net | 227,238 | (887,920) | -125.59% |
| Other income | 94,575 | 64,891 | 45.74% |
| Total non-mark-up/interest income | 4,975,824 | 2,723,403 | 82.71% |
| Total income | 23,686,370 | 15,764,864 | 50.25% |
| Non mark-up/interest expenses | |||
| operating expenses | 10,769,702 | 7,873,609 | 36.78% |
| Workers welfare fund | 264,278 | 157,628 | 67.66% |
| Other charges | 4,455 | 317 | 1305.36% |
| Total non-mark-up/interest expenses | 11,038,435 | 8,031,554 | 37.44% |
| Profit before provisions | 12,647,935 | 7,733,310 | 63.55% |
| Credit loss allowance and write offs – net | 36,079 | 1,364,901 | -97.36% |
| Share of profit of associate | 101,956 | 184 | |
| Extraordinary/unusual items | – | – | |
| Profit before taxation | 12,713,812 | 6,368,593 | 99.63% |
| Taxation | 6,104,500 | 3,061,885 | 99.37% |
| Profit after taxation | 6,609,312 | 3,306,708 | 99.88% |
| Basic and diluted earnings per share (Rupees) | 4.35 | 2.18 | – |
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Posted on: 2024-04-25T16:48:39+05:00
