August 28, 2024 (MLN): Faysal Bank Limited (PSX: FABL) reported a profit of Rs6.95 billion (EPS: Rs4.58) for the second quarter (Q2 CY24) ending June 30, 2024, reflecting a growth of approximately 60% compared to Rs4.35bn (EPS: Rs2.87) earned in Q2 CY23.
Considering this remarkable performance, the Board of Directors (BoD) has recommended an interim cash dividend of Rs2 per share.
This is in addition to the Rs1 per share interim cash dividend for the first quarter ended March 31, 2024, already paid to the Shareholders.
Analyzing the profit and loss statement, the bank witnessed a surge of 10.59% in its net return to stand at Rs19.6bn, compared to Rs17.7bn in the same quarter last year.
Similarly, the bank’s total non-markup income during the review period also improved by 99.82% YoY to Rs4.71bn 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 Rs412m during the quarter compared to a loss worth Rs647.56m reported in Q2 CY23.
On the expense side, the total non-markup expenses expanded by 13.69% to Rs11.57bn in Q2 CY24 compared to Rs10.18bn in Q2 CY23.
The increase was attributed to a 12.69% jump in operating expenses, rising from Rs10bn to Rs11.26bn in Q2 CY24.
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 credit loss allowance of Rs833.86m during Q2 CY24, compared to a reversal of Rs32.25m reported in SPLY.
On the tax front, the bank paid Rs6.67bn, 47.23% higher than the amount paid in the same quarter last year.
| Consolidated Profit and Loss account for the quarter ended June 30, 2024 ('000 Rupees) | |||
|---|---|---|---|
| Jun-24 | Jun-23 | % Change | |
| Mark-up/return/interest earned | 59,403,390 | 47,267,963 | 25.67% |
| Mark-up/return/interest expenses | 39,833,402 | 29,571,589 | 34.70% |
| Net mark-up/interest income | 19,569,988 | 17,696,374 | 10.59% |
| Fee, commission and brokerage income | 3,011,852 | 2,204,645 | 36.61% |
| Dividend income | 152,498 | 149,466 | 2.03% |
| Foreign exchange income | 1,178,901 | 587,629 | 100.62% |
| Income from dealing in foreign currencies | 12,008 | 23,244 | -48.34% |
| (Loss)/Gain on sale of securities – net | 411,994 | (647,564) | -163.62% |
| Net gains/(loss) on derecognition of financial assets measured at amortised cost | (165,256) | – | #DIV/0! |
| Other income | 106,862 | 39,097 | 173.33% |
| Total non-mark-up/interest income | 4,708,859 | 2,356,517 | 99.82% |
| Total income | 24,278,847 | 20,052,891 | 21.07% |
| Non mark-up/interest expenses | |||
| operating expenses | 11,263,980 | 9,995,439 | 12.69% |
| Workers welfare fund | 272,340 | 177,875 | 53.11% |
| Other charges | 32,442 | 2,243 | 1346.37% |
| Total non-mark-up/interest expenses | 11,568,762 | 10,175,557 | 13.69% |
| Profit before provisions | 12,710,085 | 9,877,334 | 28.68% |
| Credit loss allowance and write offs – net | (833,858) | 960,203 | -186.84% |
| Share of profit of associate | 80,161 | (32,249) | |
| Extraordinary/unusual items | – | – | |
| Profit before taxation | 13,624,104 | 8,884,882 | 53.34% |
| Taxation | 6,672,247 | 4,531,949 | 47.23% |
| Profit after taxation | 6,951,857 | 4,352,933 | 59.71% |
| Basic and diluted earnings per share (Rupees) | 4.58 | 2.87 | – |
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Posted on: 2024-08-28T15:33:01+05:00
