Faysal Bank's increased administrative expenses pull half yearly profits down by 15.7%

By MG News | August 27, 2018 at 02:33 PM GMT+05:00

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Faysal Bank Limited’s overall profits for the half year ended on June 30^th 2018 suffered a drop of 15.7% mainly due to increased administrative expenses. The profits decreased from Rs.2.9 billion during the half year ended June 30^th 2017 to Rs.2.4 billion.

The company’s Board of Directors conducted a meeting on August 27, 2018 to discuss its financial earnings for the period.

Although Faysal Bank’s net mark-up/interest income after provisions rose by 3.74, its total non-mark-up/interest income reduced by almost 3%.

Moreover, the company’s administrative expenses shot up by almost 13%, leading to a 13% increase in total non-mark-up/interest expenses.

Apart from this, earnings per shares (basic and diluted) are reported to have reduced from Rs.2.17 per share to Rs.1.59 per share.

Profit and Loss Account for the Half year ended June 30th 2018 ('000 Rupees)
	Jun-18	Jun-17	% Change
Mark-up/return/interest earned	15,309,144	14,181,995	7.95%
Mark-up/return/interest expenses	8,097,960	7,170,683	12.93%
Net mark-up/interest income	7,211,184	7,011,312	2.85%
Reversal of provision agains non-performing loans and advances - net	(597,259)	(509,924)	17.13%
Provision for consumer and small enterprise loans - general	69,387	44,513	55.88%
(Reversal of provision)/provision against off balance sheet obligations	21,581	-
(Reversal of provision)/provision for diminution in value of investments - net	(49,623)	(5,846)	748.84%
Recoveries against written off debts - net	(51,133)	(53,508)	-4.44%
Net mark-up/interest income after provisions	7,818,231	7,536,077	3.74%
Non mark-up/interest income
Fee, commission and brokerage income	1,733,755	1,470,930	17.87%
Dividend income	50,840	80,319	-36.70%
Income from dealing in foreign currencies	952,694	585,118	62.82%
Gain on sale of securities - net	174,309	1,030,616	-83.09%
Unrealised gain/(loss) or revaluation of investments classified as held for trading - net	2,204	3,342	-34.05%
Other income	310,398	150,067	106.84%
Total non-mark-up/interest income	3,224,200	3,320,392	-2.90%
Non mark-up/interest expenses
Administrative expenses	6,658,366	5,896,224	12.93%
Other provisions - net	-	-
Other charges	134,551	100,226	34.25%
Total non-mark-up/interest expenses	6,792,917	5,996,450	13.28%
Share of loss of associate	(6,196)	(17,954)	-65.49%
Extraordinary/unusual items	-	-
Profit before taxation	4,243,318	4,842,065	-12.37%
Taxation	1,832,763	1,982,639	-7.56%
Profit after taxation	2,410,555	2,859,426	-15.70%
Basic and diluted earnings per share (Rupees)	1.59	2.17	-26.73%

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