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

Faysal Bank Limited’s overall profits for the half year ended on June 30th 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 30th 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-18Jun-17% Change
Mark-up/return/interest earned                             15,309,144          14,181,9957.95%
Mark-up/return/interest expenses                                8,097,960             7,170,68312.93%
Net mark-up/interest income                                7,211,184             7,011,3122.85%
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                   44,51355.88%
(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             7,536,0773.74%
Non mark-up/interest income   
Fee, commission and brokerage income                                1,733,755             1,470,93017.87%
Dividend income                                      50,840                   80,319-36.70%
Income from dealing in foreign currencies                                   952,694                585,11862.82%
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                150,067106.84%
Total non-mark-up/interest income                                3,224,200             3,320,392-2.90%
Non mark-up/interest expenses   
Administrative expenses                                6,658,366             5,896,22412.93%
Other provisions – net                                               –                              –   
Other charges                                   134,551                100,22634.25%
Total non-mark-up/interest expenses                                6,792,917             5,996,45013.28%
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%
Posted on: 2018-08-27T14:33:00+05:00

22763