February 07, 2024 (MLN): Faysal Bank Limited (PSX: FABL) has recorded a substantial boost in its earnings for 2023 as the profit after tax stood at Rs20.247 billion [EPS: 13.34], compared to Rs11.438bn [EPS: 7.54] recorded in the Same Period Last Year (SPLY, reflecting a surge of over 77% YoY.
To reward the shareholders of the bank, the Board of Directors (BoD) has recommended a final cash dividend of Rs2 per share or i.e. 20%.
This is in addition to a 10% Interim Cash Dividend for the Second Quarter (half year) ended June 30, 2023, and 10% Interim Cash Dividend for the third quarter ended September 30, 2023, already paid to the shareholders.
Going by the results, the bank witnessed a surge of 77.72% YoY in its net interest income (NII) to stand at Rs71.07bn, compared to Rs39.99bn in SPLY.
It is to be noted that this spark in NII is due to a jump in interest-earning (Rs189.46bn), up by 81.25% YoY driven by higher interest rates.
Likewise, the bank’s total non-markup income during the review period also improved by 36.96% YoY to Rs13.06bn, owing to a significant jump in fee, commission, and brokerage income of 26.01% YoY to stand at Rs9.435bn.
The foreign exchange and dividend income reported by the bank also soared 82.93% YoY and stood at Rs4.76bn during 2023.
On the expense side, the total non-markup expenses expanded by 48.05% YoY to Rs41.254bn in 2023 compared to Rs27.865bn in 2022.
The increase was attributed to a 47.08% YoY jump in operating expenses, rising from Rs27.365bn in 2022 to Rs40.248bn in 2023.
Additionally, the bank’s expenses related to the Workers' Welfare Fund and other charges went up during the review period.
Moving forward, the profit and loss statement shows FABL incurred a provision reversal of Rs1.187bn in 2023, compared to a provision expense of Rs940.03m reported in 2022.
On the tax front, the bank paid Rs21.6bn, 91.97% YoY higher than the amount paid in 2022.
| Consolidated Profit and Loss account for the year ended December 31 2023 ('000 Rupees) | |||
|---|---|---|---|
| Dec-23 | Dec-23 | % Change | |
| Mark-up/return/interest earned | 189,462,419 | 104,528,428 | 81.25% |
| Mark-up/return/interest expenses | 118,391,676 | 64,537,133 | 83.45% |
| Net mark-up/interest income | 71,070,743 | 39,991,295 | 77.72% |
| Non-mark-up/interest income | |||
| Fee, commission and brokerage income | 9,434,663 | 7,487,466 | 26.01% |
| Dividend income | 327,234 | 513,462 | -36.27% |
| Foreign exchange income | 4,758,254 | 2,601,156 | 82.93% |
| Income from dealing in foreign currencies | 85,506 | 191,501 | -55.35% |
| (Loss)/Gain on sale of securities – net | (1,813,581) | (1,487,227) | 21.94% |
| Other income | 263,684 | 225,890 | 16.73% |
| Total non-mark-up/interest income | 13,055,760 | 9,532,248 | 36.96% |
| Total income | 84,126,503 | 49,523,543 | 69.87% |
| Non mark-up/interest expenses | |||
| operating expenses | 40,248,314 | 27,365,521 | 47.08% |
| Workers welfare fund | 886,617 | 461,285 | 92.21% |
| Other charges | 119,148 | 37,449 | 218.16% |
| Total non-mark-up/interest expenses | 41,254,079 | 27,864,255 | 48.05% |
| Profit before provisions | 42,872,424 | 21,659,288 | 97.94% |
| Provision/(reversal of provision) and recoveries against writeb-off debts-net | 1,187,412 | (940,031) | -226.32% |
| Share of profit of associate | 161,286 | 89,626 | |
| Extraordinary/unusual items | – | – | |
| Profit before taxation | 41,846,298 | 22,688,945 | 84.43% |
| Taxation | 21,599,624 | 11,251,283 | 91.97% |
| Profit after taxation | 20,246,674 | 11,437,662 | 77.02% |
| Basic and diluted earnings per share (Rupees) | 13.34 | 7.54 | – |
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Posted on: 2024-02-07T12:57:31+05:00
