February 18, 2021 (MLN): Faysal Bank has reported earnings of Rs. 6.68 billion (EPS 4.4) for the year ended December 31, 2020, i.e. nearly 11% higher as compared to the earnings of last year.
Despite a 4% decline in interest income, FABL saw a 16% growth in NII on account of lower interest expense. It also witnessed a 14.8% increase in non-interest income owing to the presence of gain on securities.
Against a total income of Rs. 32.89 billion, Faysal Bank incurred total expenses of Rs. 19.9 billion, i.e. higher by almost 14% as compared to the previous year.
Further strain was exerted by provisioning expense, which grew by nearly 20% during the year. However, the impact of it was somewhat mitigated by the share of profit from associates that amounted to Rs. 156.1 million.
Consolidated Financial Results for the year ended December 31, 2020 (Rupees in '000) |
|||
---|---|---|---|
Dec-20 |
Dec-19 |
% Change |
|
Mark-up/return/interest earned |
55,925,846 |
58,398,995 |
-4.2% |
Mark-up/return/interest expensed |
(31,378,104) |
(37,272,461) |
-15.8% |
Net mark-up and interest income |
24,547,742 |
21,126,534 |
16.2% |
NON-MARK-UP / INTEREST INCOME |
|||
Fee and commission income |
4,085,368 |
4,228,311 |
-3.4% |
Dividend income |
281,864 |
428,588 |
-34.2% |
Foreign exchange income |
2,093,354 |
2,756,432 |
-24.1% |
Income/(loss) from dertivatives |
48,201 |
175,652 |
-72.6% |
Gain/(loss) on securities – net |
1,714,254 |
(565,986) |
|
Other income |
128,865 |
250,759 |
-48.6% |
Total non-markup / interest income |
8,351,906 |
7,273,756 |
14.8% |
Total income |
32,899,648 |
28,400,290 |
15.8% |
NON MARK-UP / INTEREST EXPENSES |
|||
Operating expenses |
(19,569,580) |
(17,211,009) |
13.7% |
Workers welfare fund – net |
(227,031) |
(232,722) |
-2.4% |
Other charges |
(114,170) |
(32,707) |
249.1% |
Total non-markup / interest expenses |
(19,910,781) |
(17,476,438) |
13.9% |
Share of profit of associates |
156,170 |
||
Profit before provisions |
13,145,037 |
10,923,852 |
20.3% |
Provisions/(Reversals) and write offs – net |
(2,254,301) |
(765,365) |
194.5% |
Extra-ordinary / unusual items |
|||
PROFIT BEFORE TAXATION |
10,890,736 |
10,158,487 |
7.2% |
Taxation |
(4,210,115) |
(4,154,446) |
1.3% |
PROFIT AFTER TAXATION |
6,680,621 |
6,004,041 |
11.3% |
Basic and diluted earnings per share |
4.4 |
3.96 |
11.1% |
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