August 20, 2020 (MLN): Faysal Bank has reported a net profit of Rs 3.79 billion (EPS: Rs 2.50) for the half-year ended June 30, 2020, depicting a growth of 26% against net profits of Rs 3 billion (EPS: Rs 1.98) of the corresponding period last year.
The improvement in net earnings is the result of Net Interest Income (NII) which went up by 31% YoY.
As per the financial statement issued to PSX, the bank’s non-funded income (NFI) increased by only 6% YoY due to capital gains of Rs 1 billion. However, fee income took a 25% YoY hit owing to the impact of the pandemic on economic activity along with lower FX income (down by 43% YoY).
During the period under review, the bank’s operating expenses increased by 18% YoY to stand at Rs 9.43 billion. Moreover, provisioning charges ballooned by 2x YoY to clock in at Rs 1.46 billion.
Profit and Loss account for the half-year ended June 30th, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Jun-20 | Jun-19 | % Change |
Mark-up/return/interest earned | 31,957,073 | 25,730,284 | 24.20% |
Mark-up/return/interest expenses | 18,738,842 | 15,671,429 | 19.57% |
Net mark-up/interest income | 13,218,231 | 10,058,855 | 31.41% |
Non-mark-up/interest income |
|
|
|
Fee and commission income | 1,714,253 | 2,031,097 | -15.60% |
Dividend income | 239,888 | 242,076 | -0.90% |
Foreign exchange income | 928,564 | 1,632,529 | -43.12% |
Income from derivatives | 101,043 | 73,720 | 37.06% |
(Loss)/Gain on sale of securities – net | 1,023,946 | (408,629) | -350.58% |
Other income | (9,265) | 195,966 | -104.73% |
Total non-mark-up/interest income | 3,998,429 | 3,766,759 | 6.15% |
Total income | 17,216,660 | 13,825,614 | 24.53% |
Non-mark-up/interest expenses |
|
|
|
operating expenses | 9,179,312 | 7,795,009 | 17.76% |
Workers welfare fund | 148,127 | 121,489 | 21.93% |
Other charges | 108,012 | 17,219 | 527.28% |
Total non-mark-up/interest expenses | 9,435,451 | 7,933,717 | 18.93% |
Profit before provisions | 7,781,209 | 5,891,897 | 32.07% |
Provision and write-offs -net | 1,464,808 | 670,910 | 118.33% |
Extraordinary/unusual items | – | – |
|
Profit before taxation | 6,316,401 | 5,220,987 | 20.98% |
Taxation | 2,522,380 | 2,215,562 | 13.85% |
Profit after taxation | 3,794,021 | 3,005,425 | 26.24% |
Basic and diluted earnings per share (Rupees) | 2.50 | 1.98 | 26.26% |
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